TACOMA, Wash.--Sept. 25, 2003--Ableauctions.com Inc. (AMEX:AAC - News; the "Company") announced today that in a bid to further strengthen its profile in the Internet auction and technology community, the Company has acquired 100% of the shares of Rapidfusion Technologies and all the intellectual property rights to its Point-of-Sale (POS) software.
Rapidfusion, with approximately $1 million in annual revenue, marginal profitability, and over 500 installations of its Point-of-Sale technology (www.rapidfusion.com/technology), provides Ableauctions with technology the Company believes it can enhance and integrate to both eBay core and eBay Live Auctions. In addition to the standard POS features, the enhancements will enable users of the software to manage a bricks-and-mortar liquidation store as well as upload inventory to be sold on either eBay core or eBay Live Auctions, making it one of the first POS systems capable of such. The software is to manage and track inventory, assets and consigned products, for both a virtual and bricks-and-mortar store. The Company believes that the option for retail stores to upload surplus inventories seamlessly to eBay or Ableauctions broadcast technology will be met with a positive reaction.
The Company also believes that as a result of the economies of scale realized in combining the operations, it can enhance the profitability of the newly acquired operation. The acquisition is effective September 1, 2003 and will impact the Company`s financials immediately, reflecting an increase in revenue from operations.
The acquisition of this enhancement services operation represents a significant expansion opportunity in a key market where we can build upon many of our existing business partner relationships. We believe this acquisition will move us one step closer to becoming one of the leading auction and liquidation services companies in the world. There are clear synergies between the two companies and an excellent fit in core capabilities as well as the potential for considerable knowledge sharing. The acquisition will strengthen Ableauctions and facilitate good cross-fertilization of services across the auction and liquidation market.
This acquisition is a logical progression of Ableauctions long-term growth strategy in a market that is eager for a new entrant who can bring fresh and exciting propositions which will challenge the existing industry dynamics as online sales continue to grow. The acquisition is therefore expected to be of benefit to other businesses and the Company`s customers alike.
The purchase price for the shares of Rapidfusion totaled $10.00, with the Company committing to make available a $150,000 operating line of credit to the newly acquired subsidiary, deploying the necessary resources to enable the cash strapped operation complete its development within 90 days, and implementing a profit sharing and long term incentive plan.
Ableauctions.com is a high-tech auctioneer that conducts auctions live and simultaneously broadcasts them over the Internet. With the experience of 3,000 auctions, the Company has developed its own technology to broadcast auctions over the Internet (www.ableauctions.com/technology) and currently provides the technology and related services to auction houses, enabling them to broadcast auctions over the Internet. For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com. For more information, contact Investor Relations at firstname.lastname@example.org.
iCollector.com is a wholly owned subsidiary of Ableauctions and is the independent connection to the world`s auction houses. Founded in 1994, it was the first company dedicated to trading antiques, fine art and premium collectibles on the Internet. Today iCollector.com represents some of the world`s leading auction houses. Since January 2001, its alliance with eBay Live Auctions has resulted in hundreds of Live Auctions being broadcast in real-time, directly to the salesroom as the auction happens, selling tens of thousands of lots to many thousands of users online. With its unparalleled understanding and expertise in this sector, iCollector can help you to maximize your opportunities to find, buy or sell art, antiques and collectibles online.
This press release contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Such forward-looking statements involve known and unknown risks, a reliance on third parties for information, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our auction houses, our ability to implement our inventory procurement strategy, general economic conditions, our ability to license our software to other auction houses, and other factors that are detailed in our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ materially from the Company`s expectations and estimates.
Thorsten Bonn, 604-521-3369