AuctionCities.com Announces a $12 Million Warrant-Call Funding Round
September 27 2005 - 9:01AM
PR Newswire (US)
Financing Will Be Used to Support Major Marketing Thrust for
Holiday Buying Season and Throughout 2005/2006 VALENCIA, Calif.,
Sept. 27 /PRNewswire-FirstCall/ -- AuctionCities.com, Inc.,
(OTC:AUCC), the originator of "Micro-auctioning", zip-code focused
local online auctions; today announced a short-term round of
funding. Four classes of warrants previously issued to a select
group of private investors will be called for execution. The
Company anticipates raising approximately $12 Million from the
warrants, which are scheduled to begin being exercised this week.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080810/LAW062LOGO )
The Company plans to use the proceeds of this funding to support
aggressive advertising, publicity and promotional campaigns, which
will begin immediately and continue throughout 2005-2006.
AuctionCities.com has achieved significant customer acceptance in
the online auction marketplace with over 7 million total website
page views per month, according to NetTracker. The planned
marketing campaigns will serve to reinforce the AuctionCities.com
brand and build additional website traffic, with corresponding
revenues, for the Holiday Buying Season 2005. "AuctionCities.com
has become an extremely popular destination website. This fact is
supported by NetTracker that shows the average pages viewed per
visit at AuctionCities.com last month averaged 30 pages versus the
average on the Internet of about two or three pages," stated
Michael Berman, AuctionCities.com, Inc. CEO. "Our value proposition
is that we offer a richly featured online auction trading and sales
environment with low fees and member-friendly policies that are
highly competitive with the 'big guys' in online auctioning.
Consumers have responded by becoming active and frequent users of
AuctionCities.com," Berman continued. About Warrants: A warrant is
a certificate issued by a company giving the holder the right to
purchase securities at a stipulated price within specific time
limits or perpetually. A warrant is sometimes offered by a company
as an inducement to buy an offering of common stock or other
securities. A warrant can be provided to a select group in exchange
for services, cash or assets contributed to the company by certain
investors. By means of a properly qualified private placement
offering, a company may seek to enhance its cash asset base through
the issuance of warrants to a group of select individuals. About
AuctionCities.com: AuctionCities.com, Inc., is the originator of
"Micro-auctioning", local geography focused online auctions
marketed as "Shop your Zip-code". AuctionCities.com is the
state-of-the-art alternative and convenient way for local
auctioning and shopping. We host local auctions for geographies
represented by more than 40,000 U.S. Zip-code specific sites and
prioritized 156 metropolitan areas using our patent pending
business methods and technology. Forward-Looking Statements: The
factors discussed below and elsewhere in this Memorandum could
adversely affect the value of the Company's Common Stock. In
addition, the factors discussed below and elsewhere in this
Memorandum may constitute forward-looking statements and, as such,
may involve known or unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements or
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Any forward-looking statements
contained in this Memorandum should not be relied upon as
predictions of future events. Such forward-looking statements can
be identified by the use of forward-looking terminology such as
"believes," "expects," "may," "will," "should," "could," "seeks,"
or anticipates," or the negative thereof or other variations
thereon or comparable terminology, or by discussions of strategy.
Such statements are necessarily dependent on assumptions, data or
methods that may be incorrect or imprecise and they may be
incapable of being realized. The following factors may constitute
or include cautionary, forward-looking statements identifying
important factors with respect to such forward-looking statements,
including certain risks and uncertainties that could cause actual
results to vary materially from the future results covered in such
forward-looking statements. Contact: Publicity Department,
AuctionCities.com, Inc. 866-587-8921 Web site:
http://www.auctioncities.com
http://www.newscom.com/cgi-bin/prnh/20080810/LAW062LOGO DATASOURCE:
AuctionCities.com, Inc. CONTACT: Publicity Department,
AuctionCities.com, Inc., +1-866-587-8921,
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