Creative Computers, Inc. Announces Closing of uBid IPO.TORRANCE, Calif.--(BUSINESS WIRE)--Dec. 9, 1998--Creative Computers, Inc. ("Creative") (Nasdaq:MALL) announced today that its subsidiary uBid, Inc. (Nasdaq:UBID) (http://www.ubid.com) had closed its initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) yielding approximately $25 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale of approximately 1.8 million shares of uBid common stock, which included 237,000 shares pursuant to the exercise of the underwriters' over-allotment option. Net proceeds to uBid will be used for advertising and brand development, for development of uBid's infrastructure to support growth and for general corporate purposes. The IPO shares represent approximately 20% of the uBid's outstanding common stock. Creative will continue to own the remaining 80% of uBid but intends to distribute those shares to holders of Creative common stock in a tax free spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. no sooner than 180 days from the date of the IPO, subject to certain conditions, including confirmation of the tax free nature of the spin-off from PricewaterhouseCoopers LLP LLP - Lower Layer Protocol and, if Creative decides to seek one, a favorable IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. letter ruling to the same effect. uBid operates an online auction for excess merchandise, offering close-out and refurbished products to consumers and small to medium-sized businesses. uBid's Internet auctions feature a rotating selection of brand name computers and consumer electronics which typically sell at significant discounts to prices of traditional retailers. uBid's website is located at http://www.ubid.com. Creative Computers, Inc. is a leading direct marketer of personal computers and related products. The Company offers over 45,000 products to its customers. The Company creates demand for its products through its distinctive, full-color PC Mall, MacMall and ComputAbility catalogs, outbound marketing, Internet marketing See Internet advertising. and its websites, and other promotional materials. The Company's staff of over 400 knowledgeable sales executives, telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. , customer service and technical support personnel work together to provide high-level customer service and gain customer loyalty. Customers may call PC Mall sales at 800/555-MALL, MacMall sales at 800/222-2808, and ComputAbility sales at 800/558-0003,or shop Creative on the Internet at http://www.pcmall.com, http://www.macmall.com, http://www.ubid.com, or http://www.computability.com. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The realization of any or all of these expectations is subject to a number of risks and uncertainties and it is possible that the assumptions made by management may not materialize. In that regard, there can be no assurances that the uBid spin-off will be consummated. |
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