Answers Corporation Cancels Public Offering
NEW YORK--(BUSINESS WIRE)--Answers Corporation (NASDAQ: ANSW), creators of the leading answer engine Answers.com(TM) and WikiAnswers.com(TM), today announced the termination of the proposed public offering of its common stock, due to unfavorable market conditions. The agreement to acquire Lexico will expire on March 1, 2008.
“Due to the state of public markets, we were unable to complete our proposed public offering. However, I am very encouraged by the continued growth of our business fundamentals.”
Founder and CEO Robert S. Rosenschein explained, “Due to the state of public markets, we were unable to complete our proposed public offering. However, I am very encouraged by the continued growth of our business fundamentals.
We look forward with renewed energy to building the Answers platform and brand.”
A shelf registration statement relating to these shares was originally filed on July 17, 2007, and declared effective on August 6, 2007. This press release shall not constitute an offer to sell nor the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offer, if at all, will be made only by means of a prospectus forming a part of the effective registration statement and an accompanying prospectus supplement.
About Answers Corporation
Answers Corporation (NASDAQ: ANSW) operates the award-winning Answers.com(TM) answer engine, delivering comprehensive content on over four million topics spanning health, finance, entertainment, business and more. Content includes over 180 licensed titles from leading publishers such as Houghton Mifflin Company, Barron's, Encyclopedia Britannica, All Media Guide and others; original articles written by Answers.com's editorial team; and user-generated questions & answers from Answers.com's industry-leading WikiAnswers(TM) (wiki.answers.com). Founded in 1999 by CEO Bob Rosenschein, Answers.com can be launched directly from within Internet Explorer 7, Firefox and Opera browsers, and its service is integrated into sites like The New York Public Libraries' homeworkNYC.org, The New York Times, CBSNews.com and others. Answers.com is also available for mobile devices at mobile.answers.com. For investment information, visit ir.answers.com. (answ-f)
Some of the statements included in this press release are forward-looking statements that involve a number of risks and uncertainties, including, but not limited to, statements regarding future market opportunity and future financial performance. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Important factors may cause our actual results to differ materially, including, but not limited to, our inability to increase the number of persons who use our products, our inability to increase the number of partners who will generate increased traffic to our sites, our failure to improve the monetization of our products, a change in the algorithms and methods used by Google, the provider of the vast majority of our search engine traffic, and other search engines to identify web pages towards which traffic will ultimately be directed or a decision to otherwise restrict the flow of users visiting www.answers.com and wiki.answers.com, a decision by Google, Inc. to discontinue directing user traffic to www.answers.com through its definition link, the effects of facing liability for any content displayed on our Web properties, potential claims that we are infringing the intellectual property rights of any third party, our limited number of common shares available for future issuance, and other risk factors identified from time to time in our SEC filings, including, but not limited to, our Prospectus Supplement filed on February 8, 2008. We would also like to note specific risk factors relating to our proposed acquisition of Lexico Publishing Group, LLC, including among others, the inability to consummate or experienced delays in closing the transaction due to failure to obtain necessary financing and fulfillment of certain closing conditions, as well as the significant costs involved in such failure to complete the deal, the increase in our indebtedness with the sale of the senior secured convertible notes and the amendment to the Lexico acquisition, the potential inability to improve Lexico's monetization rates and our ability to realize other intended benefits of the transaction, our inability to integrate the operations of Lexico and other risk factors. Any forward-looking statements set forth in this press release speak only as of the date of this press release. We do not intend to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. This press release and prior releases are available at http://ir.answers.com. The information in Answers' website is not incorporated by reference into this press release and is included as an inactive textual reference only.