Axtive Corporation Details Previous $2.4 Million Funding.Business Editors/High-Tech Writers DALLAS--(BUSINESS WIRE)--June 10, 2003 Axtive Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :AXTV) on May 28, 2003 announced that it had secured $2.4 million in new equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. through a private placement of convertible 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. . The funding will enable Axtive to continue its strategy of acquiring IT professional services firms, business application software and managed hosting / application service providers. In conjunction with the equity financing, Axtive is planning a one-for-ten reverse stock split to be made effective some time during the third quarter. The funding was led by Demand Aggregation Solutions LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and included previous investors GCA GCA, ground-controlled approach: see instrument-landing system. Strategic Investment Fund Limited and Sandera Partners, L.P. as well as members of Axtive's management and a group of private individuals. Graham C. Beachum II, President and Chief Executive Officer of Axtive, commented, "We are enthusiastic about the recent equity financing, the acquisition of ThinkSpark and the expansion of our Board of Directors because we believe these events will prove to be the new foundation upon which Axtive builds its future acquisition strategy. The reverse stock split will allow Axtive to pursue re-listing of its shares at a quicker pace." Axtive's Board of Directors and the holders of a majority of the voting power of Axtive's capital stock have already approved the one-for-ten reverse stock split of Axtive's common stock. The record date of the reverse split, contemplated to be in the third quarter, will be announced following the filing with the SEC and mailing of an information statement to Axtive's stockholders. On the record date, each 10 shares of common stock will be converted into a single share with any fractional share Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. being rounded up to a single whole share. As a result of the reverse stock split, Axtive expects to have approximately 10.1 million shares of common stock and common stock equivalents outstanding (including Series A Convertible Preferred shares as if fully converted). 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 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; VirtuallyThere, a web services firm; 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, a professional services firm specializing in the installation, integration and application of software solutions from IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Informix and Microsoft and Media Resolutions, an application and managed hosting services provider. More information about these Axtive businesses is available at www.axtive.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This release includes forward-looking statements, including statements concerning potential future acquisitions and re-listing of Axtive's common stock. 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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