OREM, Utah--(BUSINESS WIRE)--iMergent, Inc. (AMEX:IIG), a leading provider of eCommerce software for small businesses and entrepreneurs, today announced that Donald L. Danks has resigned his position as Chairman of the Board, but will remain as Chief Executive Officer and Director. The board appointed Todd A. Goergen as non-executive Chairman of the Board of Directors.
The company also announced that it had completed its investigation of Mr. Danks and the independent members of the iMergent board of directors reviewed the investigation and delivered remedies.
In its SEC Form 10-Q for the quarter ended March 31, 2007, issued on May 10, 2007, the company disclosed that in an article in the May 5, 2007 edition of Barron’s alleged Don Danks shared material non-public information with select individual and institutional investors. In a conference call that day, the company also disclosed its general counsel together with outside counsel for the independent members of the board of directors, launched a thorough investigation of that allegation and the actions of the chief executive officer.
As reported in a SEC Form 8-K before the stock market August 30, the investigation concerning these allegations determined Danks appears to have violated Regulation Fair Disclosure (Reg. FD) under the federal securities laws by disclosing material nonpublic information about the company’s third quarter 2007 earnings to a third party. The investigation found no evidence that Danks disclosed this earnings information to anyone else. The company mitigated any potential misuse of the information contained in the article published on Saturday, May 5, 2007 by releasing its quarterly financial information in a press release and on SEC Form 8-K before the stock market opened on Monday, May 7, 2007.
The independent members of the iMergent’s board of directors took the following actions:
The Board of Directors appointed Todd Goergen as non-executive Chairman of the Board of the company. Mr. Goergen is Managing Member of Ropart Asset Management, LLC (“RAM”). RAM makes direct investments in small to mid-size companies. In addition he is a Managing Member of Ropart Investments, LLC, a private investment partnership. Between 1999 and 2000, Mr. Goergen was the Director of Acquisitions and Corporate Development at Blyth, Inc. From 1994 to 1999, Mr. Goergen was an Associate/Analyst in the Mergers and Acquisitions Group of Donaldson, Lufkin & Jenrette. Mr. Goergen received his degree in Economics and Political Science in 1994 from Wake Forest University. Mr. Goergen is a Board Member of Dimensions Holding, LLC, Genapure Corporation, Heads & Threads International, LLC, and US Personnel Inc. Mr. Goergen is serving as a director until the annual meeting of stockholders for the fiscal year ending June 30, 2008.
More information on the investigation will be provided on the company’s fiscal fourth quarter and year-end financial results conference call on September 5, 2007.
The company is hosting a conference to discuss its fiscal fourth quarter and year-end 2007 financial results on September 5, 2007 at 1:30 p.m. PT (4:30 p.m. ET). The call will be broadcast live over the Internet at www.imergentinc.com. If you do not have Internet access, the telephone dial-in number is 800-639-0297 for domestic participants and 706-634-7417 for international participants. Please dial in five to ten minutes prior to the beginning of the call. A telephone replay will be available through September 7, 2007; dial 800-642-1687, and enter access code 10792345.
iMergent provides eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business products or ideas via the Internet. Headquartered in Orem, Utah, the Company sells its proprietary StoresOnline software and training services which help users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In addition to software, iMergent offers site development, web hosting and marketing products. iMergent typically reaches its target audience through a concentrated direct marketing effort to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. These sessions lead to a follow-up Workshop Conference, where product and technology experts train potential users on the software and encourage them to make purchases. iMergent, Inc. and StoresOnline are trademarks of iMergent, Inc.