SOURCE: Hot Web, Inc.

March 27, 2008 06:00 ET

Hot Web, Inc. Announces Elimination of Legacy Debts and Capital Restructuring

BOISE, ID--(Marketwire - March 27, 2008) - Hot Web, Inc. (PINKSHEETS: HWBI) announced today that the Company has successfully eliminated approximately $1.6 Million in "legacy" debt that was incurred by Snap 'N Sold Corporation, Hot Web's predecessor company, in an effort to prepare Hot Web, Inc. for future financial audits, fully-reporting listing status and growth of its businesses.

Hot Web Chairman & CEO, George Stevens, stated, "When we hired the legal firm of Ater Wynne LLP in the third quarter of 2007 and began working with them to prepare to become a fully reporting public company, we thoroughly reviewed the outstanding liabilities of Hot Web. Speaking with debt holders, it became readily apparent that some of the debts incurred by the former management team of Hot Web's predecessor, had to be dealt with in order to give the company a fighting chance to succeed moving forward. The overhang from these previous debts would stymie the ability to finance the company responsibly into the future. Unfortunately, it took us nine months to negotiate applicable solutions, but that process has now been completed."

Under current Hot Web management, the Company reached a restructuring agreement with existing debt holders that eliminated $1.6mm of the Company's debts and debentures. The restructuring agreement also provided for an additional equity-based capital infusion of $500,000 for ongoing expansion and marketing of the Company's businesses. In consideration for this $2.1 Million conversion of debt and increase in net equity, the various debt holders and investors will receive 200,000,000 newly issued restricted common shares of Hot Web at a cost basis of $.0105 -- a 3500% premium to yesterday's closing price for Hot Web's common shares.

Pursuant to the restructuring, the capital structure of Hot Web is as follows: Officially, there are currently 750 Million shares Authorized with 454,887,086 shares Issued and Outstanding. Internal estimates of the "tradable" float remain -- otherwise known as shares within the DTC system -- at approximately 191,592,711.

Stevens continued, "Not only were we able to eliminate the debt under favorable terms, but we were also able to improve the capital position of Hot Web. After lengthy discussions with Hot Web's management team and a comprehensive review of the Company's business plan and operating models, the cost basis that the debt holders and investors accepted under this agreement truly shows the potential they believe Hot Web possesses."

About Hot Web, Inc.

Hot Web, Inc. is engaged in the business of consigning "big ticket" transportation related items through its diversified presences, both online and offline. The Company's mission is to "change the way the world buys and/or bids online" by harnessing the power of the Internet and coupling it with human interaction and expertise to create a safe, productive, comfortable and 'Fraud Free' way to conduct online/offline commerce. The company utilizes both its internal certified regional representative base in addition to online third-party marketing tools like eBay Motors and others to attract and market vehicle listings.

The Company's current portfolio of niche-focused online businesses consists of www.hotautoweb.com, www.hotboatweb.com, www.hotcycleweb.com, www.hotrvweb.com and www.hotplaneweb.com. The company is also currently developing other Hot Web branded online business units to complement its current roster.

Safe Harbor

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Hot Web, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contact Information

  • FOR FURTHER INFORMATION, investors are asked to visit the Company's website
    at www.hotwebinc.com.

    Or Contact Investor Relations:

    Matthew Lovito,
    Brass Bulls Corp.
    1-866-342-2700