BOSTON, Jan. 26, 2009 (GLOBE NEWSWIRE) -- Hot Web, Inc. (Pink Sheets:HWBI) announced today that the Company has entered an agreement for the sale of 7 of its Hot Web Internet properties. The buyer of the properties is a group of investors led by a current shareholder of Hot Web. The group is currently engaged in the online auction business and seeks to use their resources to capitalize on Hot Web's reputation, customer base and "fraud-free" business model. The sites being sold under this agreement are: www.hotautoweb.com, www.hotrvweb.com, www.hotboatweb.com, www.hottruckweb.com, www.hotplaneweb.com, www.hotcycleweb.com, www.hotwebinc.com.
Under the terms of the agreement, the group will form a new entity called HOT WEB PROPERTIES, INC. ("HWP") that will own and operate the properties. HWP will issue shares of its common stock to Hot Web in exchange for the properties that will represent 49% ownership in the new entity. Additionally, HWP will provide listings and capital for the expansion of the sites immediately. It is the intention of HWP to fund and build out the properties as a private company, while simultaneously pursuing a listing as a fully reporting company. Hot Web intends on distributing the 49% ownership to the current shareholders as a stock dividend. A record date for the dividend has not been determined.
The management team of HWP will consist of:
G. James Grady, CEO. Mr. Grady has over 40 years experience in the automotive industry. Mr. Grady has served as President of Retail Division for Don Olson Tire Centers where he was responsible for the retail operations of over 30 locations throughout the State of Florida. Additionally, he has served as President/CEO for Ken Towery Firestone, Executive V.P. and Franchise Development Manager for Morgan Tire and SE Regional Manager for Franchise Operations and Development for Tuffy Automotive.
Stephen G. Reed, CFO. Mr. Reed has served as a Vice President/Trust and Investment Services Officer for Bank One, Wells Fargo and Fifth Third Bank. Mr. Reed was also an Employee Benefits Consultant for Wausau Insurance Companies.
HWP plans on adding listings and representatives immediately. Initial activity will include the addition of 2-4 sales reps, 30-40 cars listings, approximately 2000 RV listings, a boat dealer for www.hotboatweb.com inventory and several ad networks to market the properties.
Jason Cooper, Interim CEO of Hot Web, Inc., commented, "In looking for the best opportunities for the Hot Web properties and our shareholders, no opportunity seemed a better fit than to partner with a group of investors and experienced management for the proper funding and development of the sites. By maintaining a 49% interest in the domains we have assured our current shareholders the ability to capitalize on the future potential of the Hot Web properties while bringing management, resources and private equity to them. We expect a lot of activity and developments regarding the domains going forward and therefore will keep the shareholders updated through regular press releases."
About Hot Web
As previously announced, Hot Web is currently negotiating the sale, joint venture and potential spin-off of the Hot Web online properties. The Company, through Presage Partners LLC, has access to a substantial number of mining assets that it is seeking to capitalize on. These mining assets include copper, gold, nickel, platinum, palladium, silver, uranium and Rare Earth Elements. The various mining opportunities are in different stages of development. Some properties are ready for drilling, others are producing and a large number of the properties are available for joint venture rather than an outright sale.
The Hot Web, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4946