CommercePlanet Inc fka CPLT

[SageWise]

Commerce Planet Announces Plan to Spin-Off Its eCommerce Business

http://biz.yahoo.com/bw/081112/20081112006061.html?.v=1

GOLETA, Calif.--(BUSINESS WIRE)--Commerce Planet, Inc. (OTCBB:CPNE - News) today announced that its Board of Directors has unanimously authorized management to pursue a plan to separate its eCommerce business by spinning off the business now known as Iventa into an independent publicly-traded company. The spin-off will be accomplished through a one-time share distribution to Commerce Planet shareholders in the spring of 2009.


The new independent company, to be formally named at a later date, will be a leading provider of eCommerce solutions in the entertainment, community networking and small business markets. Iventa currently serves enterprise clients in the lifestyle and entertainment markets, including SonyBMG, Rhino Records, Warner Music Group, Technicolor and numerous clubs, associations, and unique business verticals. In addition, Iventa has entered into strategic negotiations to merge with VComm Network, Inc. to provide the eCommerce solutions for trusted vendor processing of orders, branded marketing, downloads, dues, subscriptions, and online tuition/housing payment processes in the collegiate, faith-based, entertainment and professional organizations markets.

VComm Network serves many lifestyle and social verticals, and owns one of the fastest growing organizationally linked social networks, www.chaptercommunications.com, which serves millions of fraternity and sorority member-users through organization websites and the top two Greek Facebook applications The Greek Community and Greek Family Tree.

Newly Formed Spin-Off Iventa (NI)

Upon completion of the spin-off of New Iventa (NI), Commerce Planet shareholders are expected to receive one share of NI for every 20 held in Commerce Planet, Inc. NI will have approximately 1.5 million shares outstanding. New Iventa will be headquartered in Los Angeles and is expected to be listed on the OTCBB markets upon completion of the registration filings. Further information will be released as details of the plan are adopted by the Company and the Board of Directors.

Anthony Roth, President and Chief Executive Officer of Commerce Planet, stated, “This planned spin-off will result in the creation of a new business with a leading technology driven position in the lifestyle and entertainment markets. We believe this transaction will meaningfully enhance value for shareholders because it will enable our eCommerce business to pursue its own distinct strategic initiatives and significant growth opportunities with a sharpened focus. For example, by being strategically focused, NI will be able to attract and allocate growth capital and pursue mergers and acquisitions.”

Roth further stated, “This proposed spin-off will enable NI to further grow its uniquely positioned eCommerce solutions and differentiate its value proposition as a true technology sector, internet service provider. We believe that eCommerce and online marketing is trending significantly toward the trusted community networking arena. By merging with VComm Network’s tools and services, NI will be well positioned to be the leading service provider for the fast growing, target rich and highly sought-after marketing and sales channel of unique member-user base in lifestyle and entertainment social networks.”