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Raptor Invesments Signs Letter of Intent to Acquire Specialty Online Auction Company and eBay Titanium Power Seller
Jun 14, 2005 8:30:00 AM
Copyright Business Wire 2005
PLANTATION, Fla.--(BUSINESS WIRE)--June 14, 2005--
Raptor Investments, Inc (Pink Sheets: RAPT) announced today that it has signed a letter of intent with HotAutoWeb to acquire the online specialty auction company and eBay Titanium Power Seller. Based in Boise, Idaho, HotAutoWeb has been operating through its principal internet property, www.HotAutoWeb.com, an auction site for high-end classic cars and 'hot rods', which also lists these autos on eBay. Since the company's birth in the last quarter of 2002, the HotAutoWeb property has completed approximately $9 Million in vehicle sales, generating in excess of $90,000 in EBITDA in 2004, while profits of approximately $150,000 are expected for FY 2005 amid continued strong growth.
Jamie DeSane, acting CEO of Raptor commented, "The acquisition of HotAutoWeb has significant implications for the future growth of the new company. We love the niche market focus, as the classic car market has shown solid and consistent growth over the past decade. In fact, the growth of the HotAutoWeb site has actually been constrained due to lack of adequate human resources, cohesive operating processes and capital. Simply stated, there is more business than the business can currently handle. Once unified under the new company identity with efficient business processes integrated, we believe we can grow consignment throughput and profits geometrically virtually overnight."
The www.HotAutoWeb.com property, which most recently received favorable press in the April 2005 issue of the popular luxury lifestyle magazine 'The Robb Report', currently has over $2.7 million in consignment inventory listed, with approximately $1.2 million in consignment listings on the eBay Motors website. Approximately $250,000 in consignment listings have been listed within the last week alone.
DeSane continued "The hidden value of HotAutoWeb lies in its 19 other niche internet auction properties in development that also have not been adequately addressed due to the lack of resources. As an example, HotAutoWeb currently has several million dollars worth of airplanes, boats and motorcycles listed on both the HotAutoWeb site and eBay due to the fact that the other niche sites, such as www.hotplaneweb.com and www.hotboatweb.com, have not yet been built. Numerous requests pour in daily to consign other high value items such as RV's and real estate."
The acquisition of HotAutoWeb represents Raptor Investments' third announced acquisition since the company's management committed to joining Las Vegas, NV based Net2Auction Inc. (Pink Sheets: NAUC - News) and Dallas, TX based Orbit Drop, Inc. (Pink Sheets: OBDP - News) in the burgeoning eBay (NASDAQ: EBAY - News) drop store industry.
Safe Harbor
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Raptor Investments, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Source: Raptor Investments, Inc.
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