Exhibit
99.1
a21,
Inc. Signs Non-binding Letter of Intent with Applejack Art Partners,
Inc.
Transaction
would result in Applejack owning a Majority Stake in a21, Inc.
JACKSONVILLE, Fla.--(BUSINESS
WIRE)—July 22, 2008 -
a21, Inc. ("a21") (ATWO.OB), a leading
online digital content marketplace, today announced that it has entered into a
non-binding Letter of Intent (LOI) with Applejack Art Partners, Inc.
(Applejack). Pursuant to the LOI, Applejack would purchase all of
a21’s outstanding notes (an aggregate principal amount of $18,000,000) from the
holders of such notes and also purchase all of the shares of a21common stock
owned by a21’s note holders (an aggregate of approximately 41 million
shares). a21 would then exchange approximately 110 million newly
issued shares of its common stock with Applejack in satisfaction of
approximately $13,000,000 of such notes. The closing of the
transactions contemplated by the LOI is subject to various conditions, including
execution of definitive agreements by a21, the note holders, and
Applejack. It is the intent of all parties to complete this
transaction as described in the LOI as soon as possible.
In
addition, on July 16, 2008, Applejack made a credit facility available to a21
pursuant to which a21 could borrow up to $500,000 with the consent of
Applejack.
One
hundred thousand dollars has already been advanced to a21. The
amounts outstanding under the credit facility bear interest at 12% per
year.
John
Ferguson, Chief Executive Officer of a21, said, “We are excited to be working
with Applejack and believe the transaction should be beneficial to a21’s
stockholders, employees, and other stakeholders. This transaction
will result in a significant reduction in a21’s outstanding indebtedness and
position the company to execute its growth strategy.”
Jack
Appelman, Chief Executive Officer of Applejack, said, “We are pleased to make an
investment in a21 and believe that our complementary product offerings should
result in greater sales opportunities and efficiency for both
companies.”
About
a21
a21
(www.a21group.com) is
a leading online digital content company. Through SuperStock (www.superstock.com;
www.superstock.co.uk;
www.mediamagnet.com;
and www.purestockx.com),
and ArtSelect (www.artselect.com),
a21 delivers high quality images, art framing, and exceptional customer service.
a21 and its companies, with offices in Florida, Iowa, and London, provide
valuable and viable choices to key business partners and customers in the stock
image, art and wall decor industries.
About Applejack Art
Partners, Inc.
Applejack
Art Partners, Inc., headquartered in Sunderland, Vermont with a major production
facility in Manchester, is one of the foremost art licensing and publishing
companies in the industry, with more than 400 artists and over 300,000 images in
its database. Applejack sells and licenses artwork to manufacturers in every
major product category and maintains an extensive searchable online database at
www.applejackart.com.
Applejack also owns AJ Ross Art Auctions of Holbrook, New York and E.M. Boehm
fine porcelain of Trenton, New Jersey. For more information about Applejack Art
Partners, Inc., and its divisions, please call (802) 362-3662.
The
statements contained in this press release contain certain forward-looking
statements, including statements regarding a21, Inc.'s expectations, intentions,
strategies, and beliefs regarding the future. All statements contained herein
are based upon information available to a21, Inc.'s management as of the date
hereof and actual results may vary based upon future events, both within and
without the control of a21, Inc.'s management.