MyPhotoAlbum Inc.
FortuneCity.com Inc.: Announces Extension of Hosting Agreement and Repurchase of Strategic Investor Shares
FortuneCity.com Inc. / Capital Reorganisation/Share Buyback Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- 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 DGAP 31.07.2007 ---------------------------------------------------------------------- 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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