Auto Network USA Signs Letter of Intent With Flagstone Automotive Inc.
8 October 1998
Auto Network USA Signs Letter of Intent With Flagstone Automotive Inc.
SCOTTSDALE, Ariz.--Oct. 8, 1998--Auto Network USA (OTC BB:ANWK) the fastest growing, publicly held wholesaler of used luxury automobiles in the U.S., announced today that it has signed a Letter of Intent with Flagstone Automotive Inc.
Through Flagstone Automotive, Auto Network will further its expansion through the development of the western Canadian markets. As part of the Letter of Intent, Flagstone intends to assist Auto Network USA in obtaining $1,500,000 in debt funding. Closing of the Agreement is intended to be on or before November 1, 1998.
Mike Stuart, President and CEO, stated, "This transaction represents a significant milestone in our continued growth and international expansion. We will continue to grow our business through the consolidation of independent automobile wholesalers in both Canada and the United States."
Auto Network USA currently has offices in Scottsdale, Arizona; Albuquerque, New Mexico; and St. Thomas, Ontario, Canada.
Auto Network USA (AUTONET) is the fastest growing, publicly-held wholesaler of used late model and luxury automobiles in the country. The Company is capitalizing on the billion-dollar wholesale market by focusing operations in strategic segments of the country.
AUTONET's strategy is to gain market share in key urban areas by acquiring and consolidating the independent automobile wholesaling companies. This strategy will provide the Company with access to a large and growing volume of high-quality late model and luxury automobiles. It will also allow AUTONET to take advantage of geographical disparities in the value of cars.
Financial Statements in this press release (if any) other than historical facts are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.
