SOURCE: Global Investor Services, Inc.

December 31, 2010 16:20 ET

Global Investor Services, Inc. Announces Unwinding of Equity Agreements and Cost Reduction Actions

NEW YORK, NY--(Marketwire - December 31, 2010) -  Global Investor Services, Inc. (OTCBB: GISV) ("Global" or the "Company") announced today that the Company's senior management (the "Members") have individually agreed to cancel their ownership rights to certain common stock options to acquire common shares, warrants to acquire common shares, and convertible notes (the "Securities") issued to the Members by the Company. The Company issued the Securities to the Members in connection with individual employment agreements and unpaid accrued salaries.

The agreement by the Members to relinquish their individual ownership of the Securities relieves the Company of its obligation to issue an aggregate of approximately 30 million shares to the Members as settlement of past due compensation.

In addition to surrendering past due compensation, the Members have further agreed to accept reduced compensation in 2011 in lieu of the contracted for compensation which each agreed to at the time of employment.

The Company will also rationalize certain functions to reduce expenses and, most notably, will move its Administrative and Corporate functions to its Utah based operations facility in March 2011. 

"These cost reduction actions demonstrate our commitment to the Company's business as well as management's confidence to effectively execute our business plan. As we communicated in recent announcements, our business and marketing model have been proven out and this is reflected in lead generation and revenue growth metrics which we plan to share with our investors in the coming weeks after the close out of this quarter," said Nick Maturo, CEO of Global Investor Services, Inc.

About Global Investor Services, Inc:

Global Investor Services, Inc. provides and delivers a comprehensive on-line program of investor education through its InvestView brand, offers proprietary investor search tools and trading indicators, distributes weekly newsletters, offers access to a live "state of the art" weekly Trading Room. www.investview.com

Forward-Looking Statements

Certain statements contained in this press release may constitute "forward-looking statements." Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release.

Contact Information

  • For more information, please contact:
    Global Investor Services, Inc.
    William Kosoff, CFO
    Tel: (212) 227-2242
    www.GISVonline.com