SAN RAMON, Calif., Aug. 16, 2002 (PRIMEZONE) -- FiNet.com, Inc. (Nasdaq:FNCM) and its wholly owned subsidiaries (the "Company") today announced stockholder approval of all the Company's proposals included in its Notice of Annual Meeting of Stockholders and Proxy Statement for the Annual Meeting of Stockholders held August 15, 2002 (the "Annual Meeting").
Approval of Proposals Regarding Private Placement and R.E. Ventures Acquisition
At the Annual Meeting, the Company's stockholders approved proposals for the sale and issuance of additional shares of Series B Convertible Preferred Stock and Common Stock warrants in connection with a private placement of the Company's securities, the sale and issuance of shares of Series B Convertible Preferred Stock and Common Stock warrants to an officer of the Company and a director of the Company in connection with a private placement of the Company's securities, and the issuance of shares of the Company's Common Stock in connection with the proposed acquisition of R.E. Ventures, Inc. The approval of these proposals allows the Company to seek additional commitments to purchase the Company's securities in the private placement and to proceed with the proposed acquisition of R.E. Ventures.
The Company plans to use a portion of the proceeds from the private placement to integrate the www.realestate.com domain name and certain other assets that are to be acquired in the proposed R.E. Ventures acquisition into the current mortgage operations of Monument Mortgage, Inc., the Company's wholly owned subsidiary.
"We are pleased that our stockholders continue to demonstrate their support and confidence in our overall business strategy, as evidenced by the approval of the private placement proposals and the issuance of shares for the proposed R.E. Ventures acquisition," said Dan Rawitch, FiNet's Chief Executive Officer. Mr. Rawitch further commented, "we believe that the acquisition and integration of the RealEstate.com assets will complement Monument Mortgage's business initiatives in the mortgage industry by providing an easily identifiable online destination that will strengthen our efforts to provide state-of-the-art online financial solutions."
Rawitch continued, "I am pleased to have the opportunity to demonstrate my belief in and commitment to the success of the Company through participation in the Company's Series B private offering."
Other Proposals Approved
The Company's stockholders approved an amendment to the Company's 1998 Non-Employee Directors' Stock Option Plan to allow an annual grant to the Non-Employee Directors of 1,000 shares for each one million shares of the Company's Common Stock outstanding. The Company believes that this amendment will permit it to remain competitive in the industry and to continue to attract and retain qualified directors by providing them with appropriate equity incentives.
The Company's stockholders elected each of the nominated directors: L. Daniel Rawitch, S. Lewis Meyer, Stephen J. Sogin, Diogo Abreu, William D. Dallas, and Mario Filipe Moreira Leite da Silva. The newly elected directors were elected to serve until the next Annual Meeting of Stockholders and until his successor has been duly elected and qualified.
The Company's stockholders also ratified the appointment of Ernst & Young LLP as independent auditors of the Company for the fiscal year ending December 31, 2002.
About FiNet.com
FiNet.com, Inc. is a financial services holding company. Monument Mortgage, Inc., a wholly owned subsidiary, conducts diversified mortgage banking and brokering operations and is a provider of both traditional and online mortgage services to a diversified customer base consisting of mortgage lenders, mortgage brokers, real estate agents and consumers. Monument Mortgage offers its services to mortgage broker businesses through www.monument.com and to real estate broker businesses and to consumers through www.homewardsolutions.com and www.finet.com.
Safe Harbor
Certain statements in this press release, including statements regarding the proposed additional sales of securities in the private placement and the proposed acquisition and integration of the R.E. Ventures assets are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, including but not limited to the Company's ability to obtain additional commitments for the sale of its securities in the private placement, the Company's ability to consummate the proposed R.E. Ventures acquisition, the Company's ability to successfully integrate the www.realestate.com domain name and website and related assets into the Company's current operations, the Company's level of success entering into the lead-generation market through its anticipated use of the RealEstate.com-related assets, the Company's ability to manage growth in the mortgage business, the Company's ability to differentiate itself from competition in the mortgage industry, and the Company's ability to attract retain qualified directors, the Company's actual results may differ materially from those expressed or implied by such forward-looking statements. Investors are encouraged to read the "Risk Factors" section of the Company's Annual Report on Form 10-K/A (as amended) for the year ended December 31, 2001, and the Company's Quarterly Report on Form 10-Q (as amended) for the quarter ended June 30, 2002, which are on file with the Securities and Exchange Commission.