PALM BEACH GARDENS, Fla., Jan. 26, 2004 (PRIMEZONE) -- eCom eCom.com, Inc. (OTCBB:ECECE) ("eCom") today announces it has agreed to sell six million warrants in eCom for three million ($3,000,000) dollars to American Capital Holdings, Inc.
The agreement reached by the Board of Directors and Management of eCom is in further support of bringing additional value to our shareholders. David J. Panaia, Chairman of eCom stated, "We reached an agreement with the Board of Directors of American Capital Holdings, Inc. ("ACH") to invest in us. ACH stated two (2) days ago they have already acquired 1,799,150 shares of our common stock in the open market over the last several weeks. That continued support brought management of eCom to consider how we might further the business relationship and it was agreed that we would offer ACH 6,000,000 warrants with a exercise price of $0.50 per share, which would result in a three million ($3,000,000) dollar capital infusion into our company. ACH's purchase of these warrants directly from the company will result in a very strong debt-free balance sheet and we believe this capital investment will allow eCom to continue its pursuit of bringing shareholder value and remains consistent with the plans set forth in December to find additional value-added business opportunities in anticipation of making application for listing on the American Stock Exchange. We plan to make this application as soon as possible after the filing of eCom's forthcoming 02/29/04 Form10QSB."
Barney Richmond, Chairman of American Capital Holdings, Inc., stated, "It is the wish of our Board to continue our pursuit of the business opportunities currently available to us within the eCom spin off program currently underway. By reaching this agreement, we have partnered with eCom and have a vested interest to see a new transition is set forth which will allow David Panaia and our Company to succeed on the commitments we set in motion for our respective shareholders in December. The completion of this warrant offering will mandate American Capital Holdings, Inc. to file the required Schedule 13D as set forth in two (2) previous announcements, which requires ACH's compliance with respect to SEC insider share purchase and sale regulations. Today we committed to a long term relationship."
About American Capital Holdings, Inc.
Founded in June 2003 American Capital Holdings, Inc.; now a publicly owned Florida Corporation formed for the purpose of making majority capital acquisitions primarily in developed entities. The Company owns majority controlling interests in Cornerstone Energy Partners LP, 21st Century Exploration Corporation and Freedom 4 Wireless, Inc. ACH intends to invest primarily in energy exploration, technology, consumable goods, communications, manufacturing and governmental suppliers. The Company has developed proprietary secured funding programs specifically designed for the exploration of oil and gas in the United States, Energy Tax Incentive Preferred Securities(tm) ("ETIPS"). The "ETIPS" securities are designed to pass through oil and gas well tax investment drilling credits and depletion tax allowances directly to the investors. Usually, the cost of the oil and gas well investment is written off over a three (3) year period. In addition to "ETIPS" ACH has developed Guaranteed Principal Insured Convertible Security(tm) ("GPIC'S") as an investment grade product for insurance companies as well as the financial community. "ETIPS" & "GPIC'S" are trademarked by American Capital Holdings and have business process patent applications pending.
Statements in this news release that are not descriptions of historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expect," "intends," "believes," "plans," "anticipates," "approximately," and "likely," also identify forward-looking statements. All forward-looking statements are based on current facts and analyses. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to history of operating losses, anticipated future losses, competition, future capital needs, the need for market acceptance, dependence upon third parties, disruption of vital infrastructure, disruption of communications services marketplace, and due to natural disaster. All forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995.
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