BOISE, Idaho, Dec. 29, 2008 (GLOBE NEWSWIRE) -- Hot Web, Inc. (Pink Sheets:HWBI) announced results of an independent review of the Company's operations and the actions that will be taken in 2009 based on such results.
As previously announced, Presage Partners LLC had been engaged to provide an independent review of and make short-term recommendations for Hot Web's current business lines, review and introduce potential acquisitions or joint venture partners and to provide transitional management while the Company recruits a new executive management and operations team. Additionally, PPL was to review the best available opportunities for the Company to pursue in order to enhance the value of Hot Web for its shareholders.
Upon review and research with its various resources and clients, PPL was presented with various scenarios and opportunities for HWBI and its future. Some opportunities involved joint ventures and others involved the sale outright of the different properties. Due to its status as a publicly traded company, PPL was also presented with acquisitions for the Company outside the scope of its current operations.
After analyzing the numerous scenarios, PPL determined that funding the current Hot Web operations properly in this economic environment was not only cost prohibitive but involved substantial dilution. Putting the dilution aside, the building and marketing of the sites would take considerable time and additional resources. The Company would need more capital than it currently had access to. PPL also came to the conclusion that qualified management would be extremely expensive and difficult to find. It became clear that the biggest assets the shareholders of HWBI had were the domains themselves and their following, the business model and the Company's status as a public entity. With this information and research in hand, PPL reached out to its network in an effort to capitalize on these assets and the non-industry acquisition opportunities available.
The Company determined that, through PPL, it had access to a substantial number of mining assets. These mining assets include copper, gold, nickel, platinum, palladium, silver, uranium and Rare Earth Elements. The various mining opportunities are in different stages of development. Some properties are ready for drilling, others are producing and a large number of the properties are available for joint venture rather than an outright sale. Further, the funding on these projects would be more achievable with HWBI's current access to capital than the funding needed to fully develop and market the Company's Hot Web properties. PPL found that qualified management in the mining industry would be more accessible to HWBI.
Therefore, management has decided to pursue the sale, joint venture and potential spin-off of the Hot Web properties. It is management's opinion that by reallocating its assets and focus to mining, an industry in which it has substantial contacts and resources, the Company can achieve higher growth and shareholder equity than it could expect staying on its current operations path.
PPL will continue to move the Company forward while completing these mining acquisitions, maximizing the value of the current assets and accessing appropriate industry management to lead the Company into the future. It is the goal of PPL to bring in these mining assets, while capitalizing on the domain properties in as timely a fashion as possible. Several opportunities for both, as well as qualified management, are being reviewed and negotiated at this time.
Jason Cooper, managing Director of Presage Partners LLC and Interim CEO of Hot Web, Inc., commented, "Although it was not the intention to lead Hot Web in a different direction, it became clear as we tapped into our network of associates and current clients, that the development of the properties as they sit now would be difficult and cost prohibitive. What we did find though, was that there were opportunities for the properties outside the current structure. There are a lot of joint-venture, buyout and private equity interest out there for these domains and the reputation they have built. "
Mr. Cooper further stated, "When I was retained by Hot Web the main objective was to enhance shareholder value and equity. It is my opinion, based on research within our network and client base, that using the value of these domains to pursue the mining opportunities before us is the best way to accomplish that agenda in the shortest timeframe possible. "
George Stevens, Hot Web's former Chairman/CEO and current advisor, stated, "To be able to capitalize on the Company's current assets and pursue acquisitions that are thriving in today's economy is the right and prudent thing to do on behalf of the shareholders. The Hot Web properties represent substantial future potential value. By keeping an interest in them going forward and capitalizing on assets that will bring immediate value and interest today, shareholders are in a win-win situation for current growth as well as future value."
The Company will be announcing mining acquisitions, management and progress with its current operations over the next couple of weeks. The Company also stated that there would be no reverse or forward stock splits as a result of these actions.
About Hot Web, Inc.
Hot Web, Inc. is engaged in the business of consigning "big ticket" transportation related items through its diversified presences, both online and offline. The Company's mission is to "change the way the world buys and/or bids online" by harnessing the power of the Internet and coupling it with human interaction and expertise to create a safe, productive, comfortable and 'Fraud Free' way to conduct online/offline commerce. The company utilizes both its internal certified regional representative base in addition to online third-party marketing tools like eBay Motors and others to attract and market vehicle listings. The Company's current portfolio of niche-focused online businesses consists of www.hotautoweb.com, www.hotboatweb.com, www.hotcycleweb.com, www.hotrvweb.com and www.hotplaneweb.com. The company is also currently developing other Hot Web branded online business units to complement its current roster.
The Hot Web, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4946