Global TeleMedia International Inc. announces second quarter results and completion of private financing agreement.ATLANTA--(BUSINESS WIRE)--Aug. 14, 1996--Global TeleMedia International Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on BB:GTMI GTMI Go to Market Initiative ) announced that total revenues for the six months ended June 30, 1996 were $605,051 compared to $2,742,732 for the same period in the prior year. This decrease is a result of the company having divested itself of a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Global TeleMedia Inc., the source of 90% of its prior year's revenues. The company launched its new network marketing division, Vision 21, in the first quarter of this year. While revenues were considerably less, the company's operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was only slightly higher, ($1,607,561) for the six months ended June 30, 1996 compared to ($1,575,735) for the same period in the prior year, as the company has been effectively monitoring its costs during the development of its new customer base. Herb Perman, GTMI's CFO See Chief Financial Officer. , stated: "The company's operating results are reflective of the efforts expended to rebuild the necessary infrastructure during the first half of the year. With the current expansion plans for Vision 21, and capital expenditures announced earlier to purchase our own nationwide switching equipment, and planned future acquisitions, the company should begin to realize the benefits and competitive advantages of establishing this infrastructure." Further, the company announced that it has entered into an agreement whereby a private investment group will fund up to $10 million to the company for various corporate purposes. As of the date of this release, the company has received $1 million. An additional $4 million is scheduled to be funded to the company within the next 10 business days. The company will use these funds to deploy a nationwide switching network as previously discussed in the company's press release of July 29. The company plans to allocate the balance of funds for specific mergers, acquisitions and joint ventures it is presently pursuing. The company will begin the filing process immediately upon receipt of these funds for listing on NASDAQ Small Cap. Management believes that with this capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. the company will now have the asset base and shareholder equity sufficient to meet the NASDAQ Small Cap listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. . However, the company needs to facilitate a new listing on NASDAQ once the price of the company's shares are traded over $3.00. Roderick A. McClain, GTMI's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "This ensures that we are going to be able to complete the strong network backbone necessary to support the potential volume of business that Vision 21, the company's network marketing channel, is projected to generate." GTMI, based in Atlanta, offers a wide variety of telecommunications services and products, including residential and commercial long distance services, prepaid calling cards, interactive voice mail and conference calling through its direct sales agents, carrier sales division and Vision 21 network marketing subsidiary. CONTACT: Global TeleMedia International Inc., Atlanta Greg Catinella, Director of Investor Relations Investor relations The process by which the corporation communicates with its investors. 770/667-6088 |
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