DGAP-Ad hoc: FortuneCity To Receive Euro 500,000 Under Standby Capital Funding Agreement
Ad-hoc-announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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FortuneCity To Receive Euro 500,000 Under Standby Capital Funding Agreement
Pursuant to a standby capital funding agreement announced 24th July 2003 (see
Ad Hoc dated 24th July), FortuneCity announced today that it had successfully
met the first financial milestone and has elected to draw down the Euro 500,000
of available capital.
Under the terms of the arrangement, the first milestone required the Company to
reduce its monthly cash-burn rate to an average of $75,000 per month over four
consecutive months. This milestone was achieved at the end of November 2003.
FortuneCity has called on the Euro 500,000 made available by achieving the
financial target as stipulated in the agreement with the 2001 Metcalfe
Settlement, a Trust estabiished by the Company`s Chairman. As a result, the
Trust will increase its holding in the Company to approximately 51% (47% on a
fully diluted basis including the remaining shares which could be issued under
the standby capital funding agreement).
The Company plans to use this funding for general corporate purposes including
funding operating losses, Investing in sales and marketing efforts to propel
the growth rate of its online media sales and web services businesses, source
and develop new products and services, and upgrade and expand its hosting
infrastructure equipment. Under the facility, another Euro 500,000 remains
available for draw down when FortuneCity reduces its monthly cash-burn rate to
an average of $37,500 per month over four consecutive months.
Peter Macnee, President and CEO, stated, " We are currently experiencing revenue
improvement from both our media sales business as well as the subscription web
service business. The increase in revenue combined with further cost reductions
is steering the business closer to cash flow breakeven. This is the result of a
significant commitment from the entire FortuneCity staff over the past year.
The availability of this funding at this critical time provides the Company
with greater flexibility and increases the likelihood of reaching breakeven and
building value for our shareholders in the future."
end of ad-hoc-announcement (c)DGAP 04.12.2003
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WKN: 919383; ISIN: US34969P1021; Index:
Listed: Geregelter Markt in Frankfurt (General Standard); Freiverkehr in
Düsseldorf, Hannover und Stuttgart
040754 Dez 03
Ad-hoc-announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
--------------------------------------------------
FortuneCity To Receive Euro 500,000 Under Standby Capital Funding Agreement
Pursuant to a standby capital funding agreement announced 24th July 2003 (see
Ad Hoc dated 24th July), FortuneCity announced today that it had successfully
met the first financial milestone and has elected to draw down the Euro 500,000
of available capital.
Under the terms of the arrangement, the first milestone required the Company to
reduce its monthly cash-burn rate to an average of $75,000 per month over four
consecutive months. This milestone was achieved at the end of November 2003.
FortuneCity has called on the Euro 500,000 made available by achieving the
financial target as stipulated in the agreement with the 2001 Metcalfe
Settlement, a Trust estabiished by the Company`s Chairman. As a result, the
Trust will increase its holding in the Company to approximately 51% (47% on a
fully diluted basis including the remaining shares which could be issued under
the standby capital funding agreement).
The Company plans to use this funding for general corporate purposes including
funding operating losses, Investing in sales and marketing efforts to propel
the growth rate of its online media sales and web services businesses, source
and develop new products and services, and upgrade and expand its hosting
infrastructure equipment. Under the facility, another Euro 500,000 remains
available for draw down when FortuneCity reduces its monthly cash-burn rate to
an average of $37,500 per month over four consecutive months.
Peter Macnee, President and CEO, stated, " We are currently experiencing revenue
improvement from both our media sales business as well as the subscription web
service business. The increase in revenue combined with further cost reductions
is steering the business closer to cash flow breakeven. This is the result of a
significant commitment from the entire FortuneCity staff over the past year.
The availability of this funding at this critical time provides the Company
with greater flexibility and increases the likelihood of reaching breakeven and
building value for our shareholders in the future."
end of ad-hoc-announcement (c)DGAP 04.12.2003
--------------------------------------------------
WKN: 919383; ISIN: US34969P1021; Index:
Listed: Geregelter Markt in Frankfurt (General Standard); Freiverkehr in
Düsseldorf, Hannover und Stuttgart
040754 Dez 03
