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Cyber Merchants Exchange Completes Private Placement Pasadena, CA July 11, 2000 - Cyber Merchants Exchange, d.b.a. C-ME.com (OTC-BB: CMEE), Tuesday announced it has secured equity funding of more than $6 million from a private placement. Intercoastal Financial Services Corporation acted as the placement agent in the private placement. C-ME.com sold 1,255,900 shares of restricted common stock at $4.878 per share in connection with the transaction. Investors included strategic industrial partners, institutional investors and venture capitalists. Commented Frank Yuan, Chairman and CEO of Cyber Merchants Exchange, Inc., "We're pleased that we were able to close this offering in such a difficult market environment. Our investors and strategic partners believe in the value of the C-ME.com business model that streamlines retailers' existing internal process. This belief has been illustrated by their support and enthusiasm." "This transaction was structured positively, both for the Company and for our shareholders," said President John F. Busey. "Along with our already low cash burn rate, this private placement gives us a comfortable level of cash reserves to confidently execute our business plan. We believe that this capital infusion provides the opportunity to make our company profitable in the near future." C-ME.com will use the net proceeds from the offering to fund its operations as a premier online site for global merchandise sourcing for the retail industry. The Company's objectives are to aggressively expand its proprietary Internet Sourcing Network and to continue implementing its business plan. The mission of Cyber Merchants Exchange, Inc. d.b.a. C-ME.com (http://www.C-ME.com) is to use its proprietary web-based software to create a global business-to-business e-commerce solution that streamlines the way retailers locate viable merchandise sources. C-ME.com's current retail partners include Factory 2-U Stores (NASDAQ: FTUS) and Burlington Coat Factory (NYSE: BCF). The company also provides vendors with custom web design, web hosting, and the Virtual Trade Show ™ ("VTS"), a vertical marketplace for vendors to display their product in an open environment. The company is also forming joint ventures in the Pacific Rim to facilitate direct international merchandise sourcing for its U.S. retail partners. Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions at home and abroad, variations in cash flow, reliance on collaborative retail customers, reliance on intellectual property legislation, use of proprietary un-patented technology, dependence on the Internet and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time. |
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