Sales Online Direct Announces Completion of $6 Million in Financing
WORCESTER, MA, June 5, 2002 -- Sales Online Direct (OTC Bulletin Board: PAID), a leading provider of collectible merchandise, software, and information to the collectible and auction industry announce that it has completed negotiations with Augustine Fund, L.P. on $6 Million in total financing.
Augustine Fund has been a major institutional investor in PAID since 2000, with previous investments totaling $3 million. Augustine Fund signed a new agreement regarding funding for up to an additional $3 million to the Company if needed. The agreement will remain in effect until 2005 but may be extended to 2007.
"Augustine Fund is excited to complete another investment in Sales Online Direct as they continue to deliver high quality products and services for the collectibles industry and develop technologies to help customers manage online retailing," said Thomas F. Duszynski, Chief Operating Officer of Augustine Capital Management, LLC. "Sales Online Direct is poised for strong growth with the announcement of their recent partnership with eBay. In addition the Company has developed a unique suite of e-commerce products that should support continued success in various scenarios."
The Company extended final payment of a prior $3 million note from March 31, 2002 to March 31, 2003 and to increase the existing $1 million note due November 7, 2002 to be drawn up to $2 million. In addition the Company has the ability to access a third additional $1 million note if needed out to 2005.
Had Sales Online Direct paid the original note on March 31, 2002, approximately 8 to 12 million free-trading shares would have been issued. Sales Online Direct and Augustine believe removing that block of free-trading shares from the market, and the security provided by the additional financing, will be beneficial to all parties.
"Augustine Fund`s commitment of additional investment in Sales Online Direct under such favorable terms for Sales Online Direct and its shareholders is indicative of their confidence in our technology and long-term business plan," said Greg Rotman, CEO of Sales Online Direct. "The trading restrictions in the agreement will help protect shareholder value and add stability by severely limiting the amount of stock on the market at any one time."
About Sales Online Direct
Sales Online Direct maintains and develops portals and web sites for various companies and industries. The Company has focused its efforts on the antique and collectible industry, developing websites that enhances the user`s experience. Through web-hosting and managed services, Sales Online Direct has provided e-business solutions to many different companies including their own Rotman Auction division. Rotman Auction, an eBay Gold Power Seller, sells tens of thousands of items per year through auction, direct sales, and special events. The Company has developed the AIcommerce suite of software to increase revenues and reduce overhead through sales on the Internet, and offers these essential e-tools to other companies that they host. Through recent initiatives, Sales Online Direct is establishing itself as one of the most important collectibles portals, online auction services and technology providers to the collectibles and E-Commerce industry. Further information on the company is available on its web site, www.paid.com, or by calling (508) 791 6710. The Company`s common stock is traded on the Nasdaq OTC Bulletin Board under the symbol "PAID."
MEDIA CONTACTS: Julie Shepherd, Accentuate Inc. (for Sales Online
Direct), 847.669.0633, Julie@paid.com
INVESTOR CONTACT: Dennis Evanson, 719-534-0292
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