December 29, 2000
Quepasa.com's Board of Directors have approved a plan to liquidate and sell the Com-pany's assets with the proceeds to be distributed to the shareholders. The company's principal assets for sale include the following: the quepasa.com website business, its three wholly-owned subsidiaries - RealEstateEspanol.com, Etrato.com and Credito.com, and all other furniture, fixtures and equipment.
The plan will be subject to shareholder approval in a meeting that is expected to be held in three to four months. The company will continue to operate the quepasa.com website and the three subsidiary websites as it completes the liquidation process. "After carefully evaluating every option to maximize shareholder value over the past nine months, our Board of Directors has determined that liquidation following the sale of our assets is the best way to maximize value and provide liquidity to our shareholders." said Gary L. Trujillo, quepasa.com's Chairman and Chief Executive Officer.
Quepasa had recently received a delisting notice from the Nasdaq National Market for the inability to maintain a minimum bid price of $1.00 over the previous 30 consecutive trading days as required by Marketplace Rule 4450(a)(5). Quepasa.com could face a possible delisting as soon as February 6, 2001 if before that day the bid price of its common stock does not trade above $1.00 for a minimum of 10 consecutive trading days. The company intends to apply for listing on the Over-The-Counter Bulletin Board market following the Nasdaq National Market delisting.
Although the bilingual online portal launched in 1998 with heavy advertising and by enlisting singer Gloria Estefan as their spokesperson, Quepasa was not able to stay afloat as it had to reduce its workforce from 58 to 20 employees in November and will further reduce its staff throughout the liquidation process. The company will take a one-time restructuring charge of approximately $880,000 in the fourth fiscal quarter ending December 31 in connection with the workforce reductions in this quarter.