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Press Release
InterSearch Group Completes Round of Institutional Equity Financing, Enters Agreements to Acquire Multiple Domain Portfolios That Include www.Look.com
Multi-Million-Dollar Investment Earmarked for Acquisitions Comes in Conjunction with Major Capital Restructuring
SAN FRANCISCO, CA. — (BUSINESS WIRE) — October 11,2005
InterSearch Group, Inc. (OTC: ISGP - News) today announced it has completed a $5 million round of institutional equity financing with Barron Partners LP, a New York-based private investment partnership, as part of a capital restructuring. InterSearch has also announced that it has entered into agreements with DotCom Corporation and Look on the Web to acquire multiple domain portfolios, including www.look.com.
Under the terms of the equity financing deal, Barron has provided immediate funding to InterSearch earmarked for acquisitions. Barron has purchased 250 million shares of InterSearch common stock at $0.02 per share and received warrants to acquire an additional 250 million shares at $0.03 which are callable by the company should InterSearch complete a public offering at a price in excess of $0.06 per share.
"We searched carefully for an institutional partner who shared our vision and was of like business mind and culture to ours. Barron is just that partner and we welcome them as a significant shareholder in InterSearch. The funding support they provide will allow us to continue and accelerate the execution of our acquisition growth strategy," said Dan O’Donnell, President and CEO of InterSearch Group.
InterSearch has also entered into an $11.150 million agreement including both cash and stock with DotCom Corp. of Cary, North Carolina, to acquire a portfolio of tax-related domains, and signed a deal with Look on the Web of Ontario, Canada, to lease, with the option to buy, the domain www.look.com.
O’Donnell further commented: "As we’ve expanded our presence in the domain channel, our focus has been on quality as opposed to the quantity of domains. We consider these domains to be the equivalent of Park Avenue in terms of the Internet real estate of domains, particularly when you consider the excellent synergies we’ll achieve with our search and financial services related businesses."
As part of the Capital Restructuring, $1,223,405 in shareholder debt was converted to 30,585,137 shares of common stock at a price of $0.04 per share, 106,942,776 shares of Series A preferred were converted to common at a ratio of 5 common for each share of Series A Preferred and 100,000 shares of Series B Preferred were converted at a ratio of 10 common for each share of Series B Preferred. Additionally, the company has effected a 1 for 40 reverse stock split effective October 17, 2005.
InterSearch Group, Inc. owns and operates several Pay Per Click (PPC) Internet search engines and provides Domain Monetization services, as well as search and technology consulting services to Fortune 500 companies. More information about InterSearch Group, Inc. can be obtained at www.InterSearch.com or by contacting the company at 415-901-0410. InterSearch Group’s stock is listed on the National Quotation Bureau under the symbol ISGP.
Except for historical information, matters discussed above are forward-looking statements within the meaning of safe-harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from projected results. Those factors include, but are not limited to, economic, competitive, governmental and technological factors affecting the Company’s operations, markets, services and related products, prices or other areas. The Company undertakes no obligation to publicly release the results of any revisions to forward-looking statements.
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Contacts:
Dan O’Donnell, President and CEO
415-901-0410 Ext. 411
dodonnell@intersearch.com
OR
Gary Bogatay, Chief Financial Officer
415-901-0410 Ext. 401
gbogatay@intersearch.com
OR
Mozaic Investor Relations, Inc.
Terry McWilliams
terrym@mozaicir.com