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More Express.com details

posted on 2000-10-05 00:11 EDT
According to this e-mail supposedly (we can not verify this as true at the moment) from the director of GameFan Network (A subsidiary of Express.com) Express has been having financial dificulties but is in the midst of finalizing new funds that will cover its operations expenses from now until its IPO sometime next year.

The letter is addressed to the Staff of Voodoo Extreme, a Hardware review site (named after 3DFX's Voodoo line of video cards) which is a part of GFN, explaining that they will get their checks (for work done of the VE website) "on or around October 8th". Perhaps Express.com will also be able to pay its suppliers "on or around October 8th".

Excerpts from letter:


This lack of GFN advertising combined with the high burnrate
of a pre-IPO company puts Express into an unsatisfactory financial
situation. Summer sales have been excellent, but not enough to compensate for the weakness in other areas of the company.

...

Express is in the final stages of closing funding that should continue operations until the company files its IPO sometime early next year. Once this funding closes, we should have the funds needed to pay everyone what they are owed plus ensure that this does not happen again.

I have worked with accounting to come up with a *reasonable* date all this can happen. They have told me that by October 8th they should have the funding and back-pay situation settled. I trust this explanation, while difficult to accept, provides you the information you seek. So again, on or around October 8th, you should all be paid what you are owed and we can move forward stronger than ever.

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