Ableauctions.com said it is reviewing its strategic options in the online auction marketplace and may take the company in a new direction as a result of eBay's decision to suspend its live auction operations and the decreasing demand for liquidation inventory from top U.S. retailers.
Ableauctions.com said it is considering seeking out and acquiring a private company with revenues ranging from $50 million to $150 million and selling its existing subsidiaries and has not yet found a merger partner. According to its press release, "That being the case, the proceeds from the sale of the Company's assets and existing subsidiaries would be dividend out to shareholders. Any such transaction will likely require a vote of the Company's shareholders." It went on to say, "As it explores new options, the Company is focused on aggressively expanding what it believes will be its most profitable division, its $10.8 million investment portfolio that is comprised of loans, real property, development property and a joint venture."
Ableauctions.com's subsidiary, iCollector, has begun to wind down the eBay Live Auction portion of its business, which represented approximately 78% of its revenues for the three months ended June 30, 2008, and 22% of the its total revenue for the three months ended June 30, 2008. iCollector is also actively looking for prospective buyers or strategic partners. The eBay Live Auction component of the iCollector business is expected to close no later than December 31, 2008.
Ableauctions.com operates the domains iCollector.com, Naalive.com and Unlimited Closeouts.com.
http://www.ableauctions.com
