Axtive Corporation Announces New Private Placement.Business Editors/High-Tech Writers DALLAS--(BUSINESS WIRE)--Feb. 27, 2004 Axtive Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AXTC) announced today it had secured $3.0 million in new financing through a private placement of approximately 39 million shares of common stock. The placement was with existing investors and included the conversion of $851,000 of debt and related warrants into equity. In connection with the financing, the holders of Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". approved the conversion of all preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. to common stock under previously disclosed terms. The Preferred stockholders also agreed to waive and terminate all warrants issued in connection with their previous purchases of Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . G.C. "Scooter" Beachum III, Axtive's Executive Vice President and General Manager, said, "The successful recapitalization of Axtive allows us to continue executing our business plan, and provides the working capital needed to implement new sales and marketing strategies. The debt reduction allows Axtive to increase the strength of its balance sheet for the 2004 fiscal year, and focus on growing the business." Axtive additionally announced that Molly W. MacTaggart, its chief financial officer, has resigned to pursue other opportunities. MacTaggart has been retained as financial adviser during a transition period that ends March 31, 2004. Executive Vice President and General Manager G.C. "Scooter" Beachum III along with Controller Steve Slay slay tr.v. slew , slain , slay·ing, slays 1. To kill violently. 2. past tense and past participle often slayed Slang will assume the day-to-day responsibilities, while the company conducts the search for a CFO See Chief Financial Officer. . About Axtive Corporation Axtive acquires and operates technology products and service companies including IT professional services, business application software and managed hosting / application service providers all businesses targeting middle market companies. Axtive's products and services are focused on enhancing the capabilities of customers' business operating systems. Axtive's acquisitions have included ThinkSpark, a professional services firm specializing in the installation and integration of technology solutions from Oracle Corporation combined with UDT UDT User Defined Type UDT User-Defined Table UDT Underwater Demolition Team (US Navy SEALs) UDT Uniform Data Transfer (COM-based technologies) UDT União Democrática Timorense Consulting practices focused on various industry standard software products; ThinkSpark Web Services and Solutions, an operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon resulting from the merger of the previously acquired VirtuallyThere, a web services firm and Media Resolutions, an application and managed hosting services provider. More information about these Axtive businesses is available at www.axtive.com. Safe Harbor Statement This release includes forward-looking statements, including statements concerning the growth of future revenues and earnings. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including factors detailed in the Company's annual report on Form 10-KSB, quarterly reports on Forms 10-QSB and other Securities and Exchange Commission filings. These filings can be obtained through the SEC's website at www.sec.gov. Axtive expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations, subsequent events or new information. |
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