TACOMA, Wash., Oct. 17, 2002 (PRIMEZONE) -- In the first of several announcements related to Ableauctions.com, Inc.'s (AMEX:AAC) (the "Company") strategic restructuring, the Company announced today that it has completed the conversion of $3 million of debt into shares of common stock of the Company at $1.43 per share.
The Company issued 2,090,134 shares of common stock, in connection with its conversion of the deferred consideration notes issued as consideration in the tender offer to acquire iCollector PLC. The transaction was previously described in the July 2001 news release. The Company also announced that the rights represented by the Earn Out Consideration Note are terminated, null and void for failure of the Earn Out Conditions set forth in Appendix B of the Earn Out Consideration Note.
The conversion of the debt will have a strong and positive impact on the Company's balance sheet by eliminating the $3 million debt and the related $78,000 quarterly interest payments. The Company is expected to take a one-time charge of $234,696 related to the settlement of the debt and the iCollector acquisition.
The sale of the Company's Arizona building for $1,700,000 announced July 2002 is also expected to impact the balance sheet by eliminating $1,029,000 of debt. The Company is expected to take a one-time charge related to the adjustment of the book value of the Arizona building, the sale of the building and the operations of $206,000.
A full comprehensive Corporate Update on the Company is available at www.ableauctions.com
About Ableauctions.com
Ableauctions.com is a high-tech business-to-business and consumer auctioneer that conducts auctions live and simultaneously broadcasts them over the Internet. The Company liquidates a broad range of products including computers, electronics, office equipment, furniture and industrial equipment that are acquired through bankruptcies, insolvencies and defaults. For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com. For more information contact Investor Relations at 604-521-3375 or investorrelations@ableauctions.com.
About iCollector.com
iCollector.com 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. Hundreds of thousands of collectors use icollector.com to search its global client base of auction houses and place bids, with the support of its extensive catalog archive. Since January 2001, its alliance with eBay Live Auctions has resulted in hundreds of Live Auctions being broadcast in real-time, direct to the saleroom 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, 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.