Live Current Media Re-Structures Perfume Business
October 01 2010 - 6:02PM
Business Wire
Live Current Media Inc. (OTCBB:LIVC), an e-commerce company that
owns and operates the luxury fragrance brand, www.perfume.com, as
well as a portfolio of other domain names, today announced that the
shareholders of its 98.3% owned subsidiary, Domain Holdings Inc,
(“DHI”) an Alberta Canada company met and approved the sale of the
perfume.com domain name and business from, to Perfume.com, Inc, a
Delaware Company that is wholly owned by Live Current Media, Inc.
The purchase price was established by an independent and Certified
Business Valuator and was paid for by way of an interest free note
between the companies. This structure puts the assets and the
business activities of perfume.com into a company in the
jurisdiction where the Company generates 92.0% of its revenue and
where the company keeps its inventory, and eliminates the cross
border issues experienced with the old structure.
The shareholders of DHI also approved a 1 million-for-1 reverse
split of its shares with any resulting partial shares being
redeemed in cash by DHI. This reverse split has resulted in Live
Current Media, Inc. becoming the sole shareholder of DHI. DHI owns
the majority of the Company’s top tier domain names.
In addition to the above, the Management of Live Current
announces that continued progress is being made in connection with
its repositioning of the perfume.com business as follows:
- Perfume.com, Inc. is being registered
as a vendor by several prominent brands allowing the company access
to both the latest new products and the “hard to get” classics. The
Company has started placing orders in anticipation of the key
Holiday season. This ability is unique among eCommerce websites as
the major Brands have not traditionally sold through the internet
channel. Brands typically will not sell to “discount” sites but
have agreed to sell to perfume.com based on the new Prestige and
Luxury positioning of the site and the fact that perfume.com is
selling fragrances at full retail price. Perfume.com is working
directly with such prestigious brands as Elizabeth Arden, Oscar de
la Renta and with a wholesale distributor that gives the Company
access to a wide variety of the newest fragrance brands not
available through the discount channels.
- For the first time since the strategy
at perfume.com shifted from the traditional “Discount” model to the
“Luxury” model, Total Gross Margin in a given week has been equal
to the best weekly Total Gross Margin in the same week in any of
2007, 2008 or 2009. This is due to the fact that product margins
have risen to 50.3% and that since the new model was introduced in
April, 2010, revenue has been steadily growing.
About Live Current Media Inc.
Live Current owns one of the most powerful and engaging content
and commerce destinations on the Internet in www.perfume.com. This
site and others in the Company’s portfolio can be built into
subject-specific DestinationHubs™, that can connect people to each
other and to the information, brands, and products they are
passionate about. Live Current has headquarters in Vancouver,
Canada with an office in Mt. Olive, NJ and is publicly traded on
the OTCBB (LIVC). For more information, visit
http://www.livecurrent.com or http://www.perfume.com.
All statements in this press release that are not statements of
historical fact are forward-looking statements, including
particularly statements of projected future revenues and net
margins and the Company’s expectation that it will break even in
2012, as well as any projections of growth, earnings, revenue, cash
or other financial items, any statements of the plans, strategies,
objectives and goals of management for future operations, any
statements regarding future economic conditions or performance,
statements of belief and any statements of assumptions underlying
any of the foregoing. These statements are based on expectations
and assumptions as of the date of this press release and are
subject to numerous risks and uncertainties, which could cause
actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties include,
but are not limited to, general economic conditions particularly as
they relate to demand for our products and services; competitive
factors; pricing pressures; changes in operating expenses; our
ability to raise capital as and when we need it and other factors.
Live Current Media Inc. assumes no obligation to update these
forward-looking statements to reflect future events or actual
outcomes and does not intend to do so.
Additional Information
On September 24, 2010, Live Current filed a definitive proxy
statement with the SEC in connection with the Company’s 2010 Annual
Meeting of Stockholders. Live Current stockholders are strongly
advised to read carefully the Company’s definitive proxy statement
before making any voting or investment decision because the
definitive proxy statement contains important information. Live
Current’s definitive proxy statement and any other reports filed by
the Company with the SEC can be obtained free of charge at the
SEC’s web site at www.sec.gov or from Live Current at
www.livecurrent.com. A copy of the Company’s definitive proxy
statement is available for free by writing to our Corporate
Secretary at Live Current Media Inc., 780 Beatty Street, Suite 307,
Vancouver, British Columbia V6B 2M1. In addition, copies of the
proxy materials may be requested from our proxy solicitor,
Georgeson Inc., by phone at (888) 206-5896 or by email at
livecurrent.info@georgeson.com.
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