RIDGELAND, Miss., Nov. 17, 2004 (PRIMEZONE) -- Knobias, Inc. (OTCBB:KNBS), formerly Consolidated Travel Systems, Inc. (OTCBB:COVSA), announced today its completion of the Agreement and Plan of Reorganization dated June 30, 2004 by and among the Company, Knobias and KHI Acquisition Co. Immediately prior to the closing of the merger transaction, Knobias effected a 1-for-3 reverse split of its 7.5 million outstanding shares of common stock, resulting in 2.5 million shares issued and outstanding immediately prior to the merger. The former security holders of Knobias Holdings then received 47.5 million shares of Knobias common stock in the merger.
Simultaneously with the merger transaction, Knobias completed a private placement of convertible preferred shares for proceeds of $1.15 million, and issued convertible secured notes in the aggregate amount of $1 million, to certain institutional investors. The proceeds from the financing were used to repay bank debt, pay certain expenses and other obligations in connection with the merger transaction, and for working capital. The Merger was consummated in accordance with the terms set forth in the Agreement.
Key Ramsey, CEO of Knobias commented, "We are very excited concerning the consummation of the Merger. Over the past 5 years, Knobias has diligently created product offerings that enable the Institutional marketplace to better identify investment opportunities and subsequently track equity portfolios on a 'real time' basis. We strive to stay ahead of the marketplace by consistently delivering leading technology and content to give clients a competitive profit advantage in today's trading environment. This will continue to be our top priority moving forward."
Mr. Ramsey continued, "This merger affords Knobias access to the public markets for aggressive sales, marketing and technology development. Diligent execution of our business plan is now required to move Knobias towards a leadership position in the financial information marketplace."
About Knobias, Inc.
Knobias is a financial information services provider that has developed financial databases, information systems, tools and products following over 14,000 U.S. equities. Knobias markets its products and services to individual investors, day-traders, financial-oriented websites, public issuers, brokers, professional traders, hedge funds and other institutional investors. Knobias offers a range of financial information products from proprietary and third party databases via a single, integrated web-based platform. Knobias is uniquely capable of combining third party databases, news feeds and other financial content with internally generated content and analysis to create value-added, cost effective information solutions for all market participants.
Forward-Looking Safe Harbor Statement:
To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward looking statements, are not guarantees of future performance and involve risks and uncertainties. Knobias assumes no obligation to update any of the forward-looking statements in this release.