Flintrock Financial Services Announces Financing, Option to be Exercised
23 February 2000
Flintrock Financial Services Announces Financing, Option to be Exercised
RENO, Nev.--Feb. 23, 2000--Flintrock Financial Services Inc. (OTC BB:FNTF) ("FNTF") wishes to announce that it has received written commitments for a private placement unit financing totaling US$1,350,000 at a price of $US6.00 per unit.Each unit will consist of one common share and one warrant to purchase one additional common share at a price of $US8.00 per share for a period of one year.
The proceeds of the private placement will be used to exercise the option granted to FNTF (see news release dated January 31, 2000) to acquire an 82.5% interest in the outstanding shares of Tysa Corporation ("Tysa"), a private company in Seattle, Washington in exchange for cash consideration of US$835,000 and the issuance of 2,100,000 shares of FNTF. The balance of the financing proceeds will be used for the company's general working capital.
Tysa operates a profitable automotive Internet and point-of purchase business in Washington and California under the name Auteo Media (www.auteo.com). Following a recent expansion into Northern California, Auteo Media combines a unique blend of marketing media and products to consumers and car dealerships, each synergistic, leveraging one to the other. Tysa's core business involves the collection of vehicle data and onsite digital photographs in order to produce point-of-purchase window labels and internet services to approximately 120 vehicle dealerships in Washington and California.
In addition to Tysa's core business, the Company combines automotive auctions on its website www.bidthatcar.com, and electronic-to-print classifieds on another of its sites www.autoloco.com. The company also engages in business to business commerce between dealerships attempting to locate and wholesale used vehicles. Auteo Media is growing into a diverse automotive commerce and technology company with plans underway to include automotive telecommunications and e-commerce for vehicle parts and accessories.
ON BEHALF OF THE BOARD Per: Abdul Janmohamed, Chairman
The above statements with respect to Flintrock Financial Services Inc., which are not purely historical are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Flintrock Financial Services Inc.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based upon information available to the parties as of such date. It is important to note that the actual outcome and the actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties, such as technological, legislative, corporate, financial and marketplace changes.