DGAP-Ad hoc: FortuneCity.com Inc.

Dienstag, 31.07.2007 20:59 von DGAP

Ad hoc announcement §15 WpHG 
 
Capital Reorganisation/Share Buyback 
 
FortuneCity.com Inc.: Announces Extension of Hosting Agreement and Repurchase of Strategic Investor Shares 
 
Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. 
The issuer is solely responsible for the content of this announcement. 
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FortuneCity.com Inc. Announces Extension of Hosting Agreement and 
Repurchase of Strategic Investor Shares 
 
New York, USA, July 31, 2006: FortuneCity.com Inc. ('FortuneCity') 
announced today that it had extended its hosting marketing agreement with 
Hostopia, Inc., and has agreed to repurchase shares the Company sold to new 
Investors in the May 2006. 
 
FortuneCity agreed to extend its marketing and brand licensing agreement 
for hosting services with Hostopia for another two years.  As part of the 
extension agreement, Hostopia paid the Company $361,000, the outstanding 
balance due to FortuneCity from the January 2006 sale of its hosting 
customer base.  Under the terms of the marketing arrangement, FortuneCity 
will continue to promote and market Hostopia’s award winning hosting, email 
and ecommerce services under the FortuneCity Hosting brand name. 
 
On May 22, 2006, FortuneCity entered into a strategic investment agreement 
with a group of Strategic Investors led by James Pearson and Peter Hopper 
raising $605,000.  The objective of the agreement was to provide the 
Company with additional liquidity and seek business acquisitions that would 
build value for the Company's shareholders.  As part of the agreement, the 
Investors were granted warrants at US $0.15 cents exercisable within ten 
years, subject to the new investors actively working, identifying and 
successfully negotiating an acquisition acceptable to the Board of 
Directors.  In the event that certain activity measurements were not met 
within the first 18 months following this agreement, the Company and the 
Investors could end the relationship by way of a series of Put and Call 
Agreements. 
 
Over the course of the last year, it became apparent that the strategic 
plan originally contemplated by the Company and Investors was unlikely to 
be realized and that the shares and warrants issued to the new investors 
were an impediment to the Company making a meaningful acquisition thus the 
Company agreed to repurchase 2,692,436 shares for US $0.15, representing 
66.7% of the originally purchased shares, along with the cancellation of 
8,144,892 warrants (83.3% of original grant).  The stock lock up agreement 
that included the Investors along with Jay Metcalfe, Peter Macnee and Dan 
Metcalfe has been terminated and Mr. Pearson and Mr. Hopper will resign 
from the FortuneCity.com Inc. Board of Directors.  In addition, Jay 
Metcalfe has provided the Company a $200,000 credit facility. 
 
The Company is pleased to announce that Daniel Metcalfe and Peter Langkilde 
will join the Board with immediate effect.  Jay Metcalfe will remain as 
Chairman of the Board and Peter Macnee will remain as President and Chief 
Executive Officer, and Director. 
 
Dan Metcalfe co-founded FortuneCity in 1997 and will rejoin the Board of 
Directors with a broad understanding and knowledge of the Internet 
industry.  Dan’s vision and passion was instrumental in the early 
development of FortuneCity’s web properties and its growth to become the 
11th most visited web property on the planet by early 2000. 
 
Peter Langkilde is an international entrepreneur and investor focused on 
the Telecom sector.  In his career he has held senior executive roles in 
BellSouth, TDC, Millicom and Leap Wireless International winning mobile 
licenses and developing mobile operators internationally.  Mr. Langkilde 
was the CEO for a $1 billion infrastructure rollout and commercial start up 
of 10 mobile companies in Russia where he served as Chairman of several of 
the joint venture operations.  Mr. Langkilde was the Founder and Chairman 
of End2End, a global mobile data infrastructure provider, which received 
first round funding of $125 million and serves all the largest mobile 
operators in the world.  End2End was sold to Mach (owned by the private 
equity firm Warburg Pincus) where he now serves on the Board.  He is also 
Chairman of Friendi the pan Middle East MVNO. 
 
Peter Macnee stated that 'We believe that the renewal of the agreement with 
Hostopia and the recent unwinding of our agreement with the Strategic 
Investors provides us with greater flexibility to move forward in the 
future.  FortuneCity continues to see solid growth from its photo services 
business I look forward to working with the new Board members to advance 
the business.' 
 
Contact: 
Contact: 
Peter Macnee 
President & CEO 
investor-relations@corp.fortunecity.com 
+1-212-981-8624 
(c)DGAP 31.07.2007  
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Language:     English 
Issuer:       FortuneCity.com Inc. 
              322 8th Avenue, Suite 701 
               New York, NY 10001 
              Vereinigte Staaten von Amerika 
Phone:        +1 212 981-8600 
Fax:          +1 212 981-8125 
E-mail:       investor-relations@corp.fortunecity.com 
Internet:     www.fortunecity.com 
ISIN:         US34969P1021 
WKN:          919383 
Indices:       
Listed:       Geregelter Markt in Frankfurt (General Standard); Freiverkehr 
              in Hannover, Düsseldorf, Stuttgart 
End of News                                     DGAP News-Service 
  
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