TACOMA, Wash., April 8, 2003 (PRIMEZONE) -- Ableauctions.com Inc. (AMEX:AAC) (the "Company") announced today that it has entered into an agreement to sell its subsidiary Ehli's Commercial/Industrial Auctions, Inc. (the "Ehli").
Under the terms of the agreement, the Company will sell the 100% of the issued and outstanding shares of Ehli to its former Director, Randy Ehli, in consideration of $154,000 cash and continued use of office space and business in the same premises for two years at no charge to Ableauctions.
The Company will continue to operate in Washington, acquiring and liquidating inventory, but intends on running its local "bricks and mortar" auctions through Ehli. The move to sell the shares of Ehli comes as a result of the Company's aggressive restructuring program to focus on its technology and profitable operations, and sell or license its non-performing units. It enables the Company to continue operations in those regional areas cost effectively and free of any long-term debt or obligations.
The continued fallout from a very challenging business environment in North America had seen Ehli revenues and used vehicle sales drop over the last two years, and losses incrementally increase. In 2001, Ehli had annual revenues of approximately $1,678,852 and sustained a net loss of $39,639 for the year. In 2002, despite a substantial injection of cash into the operations and significant restructuring, Ehli had annual revenues of $1,471,402 and sustained a net loss of $108,512 for the year - a $44,789 gain in the first quarter, $39,464 loss in the second quarter, $45,821 loss in the third quarter and a $68,016 loss in the last quarter. The Company acquired Ehli in May 2000 for $1,250,000, payable as $350,000 in stock at a deemed price of $7.00 per share the balance in cash.
About Ableauctions.com
Ableauctions.com is a high-tech business-to-business and consumer auctioneer that conducts auctions live and simultaneously broadcasts them over the Internet. The Company liquidates a broad range of products including computers, electronics, office equipment, furniture and industrial equipment that are acquired through bankruptcies, insolvencies and defaults. For a comprehensive corporate update and prior releases, read the 10KSB and visit www.ableauctions.com. For more information contact Investor Relations at 858-847-9667 or investorrelations@ableauctions.com.
About iCollector.com
iCollector.com is the independent connection to the world's auction houses. Founded in 1994, it was the first company dedicated to trading antiques, fine art and premium collectibles on the Internet. Today iCollector.com represents some of the world's leading auction houses. Since January 2001, its alliance with eBay Live Auctions has resulted in hundreds of Live Auctions being broadcast in real-time, direct to the saleroom as the auction happens, selling tens of thousands of lots to many thousands of users online. With its unparalleled understanding and expertise in this sector, iCollector can help you to maximize your opportunities to find, buy or sell art, antiques and collectibles online.
This press release contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our auction houses, our ability to implement our inventory procurement strategy, general economic conditions, our ability to license our software to other auction houses, and other factors that are detailed in our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ materially from the Company's expectations and estimates.