PREDICT IT SUSPENDS NEGOTIATIONS FOR PROPOSED HSX TRANSACTION
Company to Explore Alternatives
CONTACT: Predict It, Inc.
Andrew Merkatz, 212/217-1200
NEW YORK--Nov. 3, 2000--Predict It Inc., (OTCBB:PRIT), a provider of
interactive prediction applications targeting the online sports and financial
markets, announced today that it has ceased negotiations regarding its proposed
merger with Hollywood Stock Exchange. The Company announced that the two
companies have failed to secure the necessary financing that was required to
complete the proposed merger. The Company also announced that earlier today it
had reduced its staff from 30 full-time employees to four in an effort to reduce
its costs and preserve its remaining capital. The Company is currently exploring
alternatives, including raising additional financing, and/or a sale of the
Company or certain of its assets. There can be no assurance that the Company
will be successful in its pursuit of any of these alternatives. If additional
funds cannot be raised or a sale does not occur, the Company will be required to
consider alternative courses of action, including, without limitation, winding
down the operations of the Company or filing a voluntary petition to seek
protection under the bankruptcy laws. "Due to extremely difficult capital market
conditions and a general lack of investor enthusiasm for interactive
entertainment companies, we were unable to secure the financing to complete the
HSX deal or continue to meet our current payroll obligations," stated Andrew
Merkatz, President of Predict It.
About Predict It, Inc.
Predict It, Inc. (OTCBB:PRIT) is a provider of interactive prediction
applications targeting the online sports and financial markets. The Company's
flagship product, Predict It(R), is based on an innovative, patent-pending
prediction exchange system that objectively documents and rewards users based on
their ability to predict the outcome of future sporting events. The Company's
second product is the VirtualStockExchange(R), a rewards based stock market
simulation which enables consumers to compete against one another in
customizable private and public stock market competitions for cash and other
valuable prizes. Consumers may access Predict It directly via its web sites at
www.predictit.com and www.virtualstockexchange.com or through its network of
sports, finance, news, portal, and community affiliate sites. Predict It is
based in New York's Silicon Alley and is a fully reporting company.
The statements contained in this release that are not historical facts
may be deemed to constitute forward-looking statements. Actual results may
differ materially from those projected in such statements due to a number of
risks and uncertainties, including, without limitation, demand and competition
for the Company's products and other risks and uncertainties detailed in the
Company's filings with the Securities and Exchange Commission.
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