EXHIBIT 99.1
CONTACTS:
eFax.com
TODD J. KENCK
[email protected]
650-688-6810
EFAX.COM TO BE DELISTED FROM NASDAQ NATIONAL MARKET
Continued Listing on National Market Not a Condition for JFAX Merger Completion
MENLO PARK, Calif - (Business Wire) August 9, 2000 - eFax.com (Nasdaq:
EFAX) today announced that the Company has been notified by The Nasdaq Stock
Market that its Common Stock will be delisted from The Nasdaq National Market
effective with the opening of business on August 9, 2000. The delisting was as
a result of the Company's failure to meet Nasdaq's continued listing
requirements.
Nasdaq has informed the Company that it may be eligible for trading on the
over-the-counter electronic bulletin board sponsored by Nasdaq (the "Bulletin
Board") and the Company will seek to have its Common Stock traded on the
Bulletin Board.
If, within 20 business days after delisting, the Company's Common Stock is
not relisted on The Nasdaq National Market or newly listed on The Nasdaq
SmallCap Market, The New York Stock Exchange, the American Stock Exchange or
the Bulletin Board, the holders of the Company's preferred stock will have a
right to redeem all or part of their preferred stock for cash. The current
redemption value of all of the outstanding preferred shares is approximately
$19.6 million.
The Company does not currently plan to appeal the delisting on The Nasdaq
National Market and is not currently eligible for listing on The Nasdaq
SmallCap Market, The New York Stock Exchange or the American Stock Exchange.
On July 13, 2000, the Company entered into a merger agreement (the "Merger
Agreement") with JFAX.COM, Inc. pursuant to which the Company would merge (the
"Merger") with a subsidiary of JFAX.COM and become a wholly owned subsidiary of
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JFAX.COM. The continued listing of the Company on The Nasdaq National Market
is not a condition to the completion of the Merger.
Because the Company will no longer be listed on The Nasdaq National
Market, stockholders of the Company who comply with the required procedures,
including not voting in favor of the Merger, will have appraisal rights if the
Merger is completed. Under the terms of the Merger Agreement, if 5% or more of
the Company's stockholders seek appraisal rights JFAX.COM will have the right
to not complete the Merger.
If the Merger does not occur, the Company believes that it is likely that
its preferred stockholders will have the right to require the Company to redeem
all or part of their preferred stock for cash.
ABOUT EFAX.COM
eFax.com (Nasdaq: EFAX - news) is a leading provider of Internet
communication services, and has delivered unique telephone numbers to 2.3
million members. The Company continues to expand its range of solutions beyond
its initial offering of the world's first free fax-to-email service. The
Company markets its Internet services via its own eFax.com web site and through
affiliates and co-brand partners, including Travelocity.com, Network Solutions,
WebTV, Buzzsaw.com, fortunecity.com, FindLaw, Phoenix Technologies and
AllBusiness.com. eFax.com is headquartered in Menlo Park, Calif. For more
information, call 1-877-EFAXCOM; fax (650) 326-6003; or visit: www.efax.com.
The statements in this press release relating to matters that are not
historical are forward-looking statements. Actual results could differ
materially from these forward-looking statements. Readers are referred to the
documents filed by eFax.com with the Securities and Exchange Commission, which
identify important risk factors such as the Company's ability to obtain
additional users for our Internet services, our dependence on third parties for
network and telephony services, and regulatory issues.
(c) 000 eFax.com. All rights reserved.
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