Ableauctions.com Offers To Acquire iCollector
And Releases 2nd Quarter Results
SCOTTSDALE, ARIZONA - August 22, 2001 - Ableauctions.comTM, Inc. (AMEX:AAC) (the "Company") announced today its results of operations for the Company for the six month period ending June 30, 2001 and its offer to acquire iCollector PLC.
Results of Operations
The Company reported net auction revenue of US $5,548,914 during the six month period ending June 30, 2001 compared to US $4,450,405 for the corresponding period in 2000, an increase of 20%.
Gross profit as a percentage of sales increased to 54.7% for the six month period ended June 30, 2001, compared to 21.63% for the same period in 2000. The Company believes that the increase in gross margins is attributable primarily to the implementation of the Company's procurement model in the business operations that the Company acquired during the second and third quarters of 2000.
Operating expenses also decreased slightly from $3,698,419 for the six month period ended June 30, 2000 to $3,419,454 for the same period in 2001. The Company continued its expansion plans throughout the second quarter of 2001, and recommenced development efforts related to its auction software and live-broadcasting technology, which increased the Company's expenses during the second quarter and largely contributed to the losses incurred during six month period ended June 30, 2001.
The Company reported a loss from operations of $380,019 for the six months compared to a loss of $2,728,184 for the corresponding period in the prior year. The overall loss for the six months was $847,384, compared to $2,728,184 for the corresponding period in 2000.
The Company continued its expansion plan throughout the second quarter of 2001. With the cash flow realized from its operations in the fourth quarter of 2000 and the first quarter of 2001, the Company recommenced its auction software and live-broadcasting technology development. These programs were initially placed on hold until they could be financed by either profitable operations or external financing. The losses realized in the second quarter were largely attributable to the Company continuing its software and Internet technology development.
In the first quarter of 2001, the Company recorded a one-time charge to operations of $467,365 related to the sale of its discontinued operations, Surplus Office Systems Ltd. ("Surplus"). During the first quarter of 2001 the Company merged the profitable components of Surplus with its operations in Surrey, B.C., Seattle, Washington, and San Mateo, California. The business remaining in Surplus, which comprised mainly of the manufacturing division, was considered redundant to the operations of the Company and was sold to its management on March 2, 2001.
Despite the downturn in the technology and Internet sector, the Company generates sufficient cash resources from internal operations to continue its Internet technology and software development. During the second quarter, the Company hired new employees and purchased new computer technologies to further its development. The losses in the second quarter reflect the recommencement of this program.
Offer to Acquire iCollector
Ableauctions is also pleased to announce that it has made a formal Offer (the "Offer") to acquire iCollector PLC ("iCollector") of London, England.
iCollector was founded in 1994 and provides an indexed catalogue of art, antiques and collectibles for over 300 auction houses, dealers and galleries in the United States, Europe and the United Kingdom and facilitates transactions by broadcasting live auctions over the Internet in conjunction with eBay Live Auctions. The company has spent over US $25 million in developing its infrastructure and today, represents hundreds of the world's premier auction houses and some of the world's most reputable dealers and galleries. On a typical day over 25,000 art works, antiques and collectibles are available to be bid for and bought on iCollector's website.
Through iCollector's existing relationship with eBay Premier, a specialty site on the eBay (NASDAQ:EBAY) website that showcases fine art, antiques, fine wines and rare collectibles from leading auction houses and dealers from around the world, iCollector facilitates transactions by broadcasting its clients auctions live using eBay's Live Auctions technology.
iCollector has signed over 70 auction house clients in the United Kingdom, United States and Europe for live auctions using eBay's Live Auctions technology and has successfully hosted over 80 live auction events.
Ableauctions, through Levy Gee, its financial advisors in the United Kingdom, has made a recommended offer to acquire 100% of the shares of iCollector in consideration of the issue to the iCollector's shareholders of 4,150,000 shares of Ableauctions, at a deemed value of US $1.43 per share, a deferred consideration note of approximately $3,000,000 ("Deferred Consideration Note"), and an additional earn-out deferred consideration note of $5,000,000 ("Earn Out Consideration Note"). Total consideration for all of the shares of iCollector has been valued at $13,934,500.
Deferred Consideration Notes. Ableauctions will issue Deferred Consideration Notes to the shareholders of iCollector in the aggregate principal amount of $3,000,000 payable, without interest, one year from the date the Offer becomes unconditional in all respects. These Deferred Consideration Notes are convertible into shares of common stock at Ableauctions' sole option at $1.43 per share, subject to regulatory approval, approval by our shareholders and the approval of a listing application by AMEX related to such shares, if required.
Earn Out Consideration Notes. Ableauctions will issue Earn Out Consideration Notes to the shareholders of iCollector in the aggregate principal amount of $5,000,000, payable, without interest, on September 30, 2002 only if iCollector satisfies certain revenue and transaction milestones during the month of July 2002. The Earn Out Consideration Notes are convertible into common stock at our sole option at the fair market value of such shares (as determined by the five day average closing price of the shares of common stock of Ableauctions as quoted on the AMEX or such other primary exchange or public market for such shares), subject to a minimum of 2,000,000 shares and a maximum of 3,500,000 shares in aggregate. Ableauctions will obtain regulatory approval, shareholder approval and listing approval from AMEX prior to exercising our option to convert the Earn Out Consideration Notes into shares, if required.
The Offer is conditional on, among other items, the passing by iCollector shareholders of certain resolutions in connection with the Offer. The Offer is being made in compliance with the U.K. City Code On Takeover and Mergers. The Offer is being made in the United States pursuant to an exemption from the U.S. tender offer rules provided by Rule 14d?1(c) under the Exchange Act and pursuant to an exemption from the registration requirements of the Securities Act of 1933 provided by Rule 802 thereunder.
In order to finance ongoing operations, iCollector, as a condition of the offer, is proposing to raise working capital of approximately US $3,800,000 by way of a secondary fundraising of ordinary equity which has been conditionally placed with Schroders Investment Management Limited.
Commenting on the merger, iCollector Chairman, Tony Caplin states "Consolidation in this industry is inevitable. At iCollector we recognize that by combining Ableauctions' auction expertise with iCollector's quality client base and brand, we will be able to reach critical mass and profitability much more rapidly and efficiently".
Chairman and President of Ableauctions, Abdul Ladha said, "We are delighted to join forces with iCollector. This acquisition is an important step for Ableauctions' expansion into Europe with iCollector, a company who has achieved high brand recognition in the US and European auction markets. This acquisition brings considerable advantages to both parties, through cost benefits, consolidating marketing efforts, and combining our respective auction expertise, we are very excited about this opportunity. The acquisition of iCollector complements our 6 other acquisitions over the last eighteen months. We will continue our expansion plan through acquisitions, partnerships and technology licensing agreements."
About Ableauctions.com
Ableauctions.com is a high-tech business-to-business and consumer auctioneer that conducts auctions live and simultaneously broadcasts them over the Internet. The Company liquidates a broad range of products including computers, electronics, office equipment, furniture and industrial equipment that are acquired through bankruptcies, insolvencies and defaults. This release and prior releases are available on the Company's Internet Auction web site located at www.ableauctions.com.
@Kicky: Du solltest außerdem den operativen Verlust unterscheiden vom Gesamtverlust. Able hat seit 1999 zusammen mit iCollector 6 Auktionshäuser übernommen. Es entstehen Kosten, die sich aber im Gesamtergebnis auch lohnen. Im gesamten konnte Able seine Ergebnisse stetig bessern, und darauf kommt es mir auch an.
DIE ZAHLEN SIND NICHT SCHLECHT IM HINBLICK AUF DAS GESCHÄFTSMODELL. Die Partnerschaft mit eBay gibt Able neue Perspektiven (versteckt schon in der letzten News Release von Able erwähnt). Du solltest Dir übrigens das neue Vorstandsmitglied mal anschauen. Ich stütze mich auf Analysen von Eureffect, auf Artikel von Handelsblatt und Telebörse.
Ich weiß, dass ich hier für mich richtig liege. Kicky, niemand zwingt hier niemanden, in einen Wert zu investieren. Ich habe ganz am Anfang auf das Risiko verwiesen, auch wenn ICH mir meines Kurszieles sicher bin. Denn ich weiß, dass eBay heute mehr als 60US$ kostet, und ich kenne das Potenzial von Able. Denn ich kenne diesen Wert.
Und ich verlasse mich eher auf Fachmedien und erfogreiche Investmenthäuser als auf Dich! Also höre bitte auf hier zu bashen. Das hier ist ein Zock, ein Thread für Able. Leute, die zocken wollen, können das tun, andere können es lassen.
ICH BLEIBE WIETERHIN BEI MEINEM VORLÄUFIGEN KURSZIEL VON MIND. 5$.