Quepasa.com announced that the Company's Board of Directors had approved the development of a plan of liquidation and sale of the Company's assets with the proceeds to be distributed to the shareholders.
The Company's principal assets for sale include the following: the quepasa.com website business, its three wholly-owned subsidiaries - RealEstateEspanol.com, Etrato.com and Credito.com, and all other furniture, fixtures and equipment. The plan will be subject to shareholder approval. The meeting of quepasa's shareholders to approve the plan is expected to be held in three to four months. The Company will continue to operate the quepasa.com website and the three subsidiary websites as it completes the liquidation process.
"After carefully evaluating every option to maximize shareholder value over the past nine months, our Board of Directors has determined that liquidation following the sale of our assets is the best way to maximize value and provide liquidity to our shareholders." said Gary L. Trujillo, quepasa.com's Chairman and Chief Executive Officer.
Quepasa reduced its workforce from 58 to 20 employees in November, 2000 and will further reduce its workforce throughout the liquidation process. The Company will take a one-time restructuring charge of approximately $880,000 in the fourth fiscal quarter ending December 31, 2000 in connection with the workforce reductions in this quarter.