PRESS RELEASE, DATED JANUARY 3, 2001
Exhibit (a)
Virtual Communities, Inc. Receives Delisting Notification from Nasdaq and
Default Notice from Secured Lenders
New York, NY, January 2, 2001 - Virtual Communities, Inc. (Nasdaq: "VCIX"), a
developer of content management software, today announced that the Company
recently received notification from The Nasdaq Stock Market, Inc. of its
intention to delist the Company's securities from the Nasdaq SmallCap Market at
the opening of business on January 8, 2001. The delisting is made in connection
with the Company's suspension of business operations announced on December 6,
2000 and the Company's inability to maintain minimum listing standards required
by Nasdaq SmallCap Market. Nasdaq halted trading in the Company's securities on
December 14, 2000. The delisting decision by Nasdaq principally relied upon
Marketplace Rules 4300 and 4330(a)(3) related to protection of investors. The
Company's securities may eventually trade on NASD's OTC Bulletin Board or the
National Quotation Bureau Pink Sheets, however there can be no assurance in this
regard nor can the Company estimate a timeframe when that might occur.
Virtual Communities, Inc. also announced today that its secured lenders have
informed the Company that it is in default on the terms of its Convertible Note
and such lenders intend to foreclose on the Company's 60% interest in Cortext
Ltd. that serves as collateral on the Note.
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Certain statements in this news release regarding the Company's expectations,
estimates; present view of circumstances or events, and statements containing
words such as estimates, anticipates, intends, and expects, or words of similar
import, constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements indicate uncertainty
and the company can give no assurance with regard to actual outcomes. Specific
risk factors may include, without limitation, the Company's inability to obtain
sufficient financing to resume operations, proceeds from the sale of assets may
be insufficient to resume operations, the Company's inability to enter into
definitive agreements and uncertainty of the continuation of working
relationships with strategic business partners, possible downturns in business
conditions; increased competition; loss of significant customers; availability
of qualified personnel and timely deployment of company resources.
