FINET.COM COMPLETES $7.4 MILLION
PRIVATE EQUITY PLACEMENT
NEW EQUITY TO BE USED TO FURTHER
DRIVE COMPANY GROWTH
San Ramon, Calif., October 17, 2000 -- FiNet.com, Inc. (NASDAQ: FNCM
www.FiNet.com, "America's Home Finance Network," (the "Company") today announced
that it closed a $7,400,000 private placement of common stock to a prominent
group of the Company's existing private investors. The capital will be used to
expand the Company's warehouse lines of credit to accommodate the significant
increased growth and demand for the Company's technology-based mortgage lending
services.
The investment group consists of a prominent group of Finet's existing
shareholders including one of Portugal's largest international investment banks,
Banco Espirito Santo de Investimento, S.A.
The offering consists of 18, 500,000 shares of common stock at a purchase price
of $0.40 per share. The securities have not been registered under the Securities
Act of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
"This private placement reinforces the commitment of our existing strategic
investment partners, and demonstrates their continued confidence in management
and our ability to execute our aggressive business plan," stated Rick Cossano,
President and CEO of FiNet.com. "Our primary reason for completing this equity
financing is to secure additional warehouse credit lines to meet our increased
funding demands and to move us aggressively toward our goal of Company
profitability. We view this financing commitment by, and support of, our major
shareholders as a clear validation of our strategic direction and the business
opportunity available to Finet.com"
About FiNet.com
FiNet.com, Inc., through its wholly owned subsidiaries (the "Company") is a
leading e-commerce provider of financing services that facilitate home
ownership, including a variety of technology and loan products and automated
services for mortgage broker businesses and for consumers. The Company offers
online solutions to mortgage broker businesses through Monument Mortgage at
www.monument.com and residential financial services directly to consumers at
www.finet.com.
Contact Information: Paula Norris, Investor Relations 925-242-6511
Safe Harbor
Certain statements in this press release, including statements regarding the
anticipated development and expansion of the Company's business, and the intent,
belief or current expectations of the Company, its directors or its officers,
are "forward-looking" statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995). Because such statements are subject
to risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements.
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