January 17, 1999
SNN #13
ACCESS 1
SYMBOL: AONE
This issue of SNN will be solely devoted to Access Developers
Inc., a US based Internet Service Provider (ISP).
The attached News Release and Profile will give you an overview
on the company and its prospects.
The company will begin trading this Tuesday, January 19,1999, under
the symbol AONE. It will trade on the NASD OTC BB.
The market will determine at what price the shares will open for
trading but early indications are that it should be in the $3-$4
range.
With the extreme volatility of new issues in the "Internet" field,
SNN as always, cautions our subscribers to decide on a price they
are willing to pay for any company and stick to it - at least until
the early volatility has dissipated.
We watched the CBS Marketwatch (Symbol MKTW) underwriting on
Friday and were shocked to see that the first trade after completion
of the $17.00 underwriting took place at $90.00. The stock then went
on to trade as high as $130.00 and close at $97.50. Truly astounding!!!!
SNN would be surprised to see AONE trade at five times the opening
price, although we do expect strong interest in the company.
ACCESS PROFILE
Access Developers Inc.
Access1
www.access1.net
6150 Lusk Boulevard, Suite B-204, San Diego, CA 92121
Company
On or about January 19, 1999, Access Developers Inc., doing business
as, Access 1, intends to become a publicly traded entity as a result
of the reverse take-over (RTO) of a public company. Access 1 is
currently one of the fastest growing, Internet Service Providers
(ISP's) in the US showing an 800% increase in sales from fiscal
1997 to 1998.
Access Developers Inc., was formed by Thomas V. Walker to exploit
investment and business opportunities in the Internet marketplace.
The company currently provides Internet services, web hosting and
design in 16 cities in the United States under the trade name Access1.
The company can currently provide Internet access from 28.8 to T-1
capability, through state of the art digital equipment. Access 1
currently offers toll free dial-up access in virtually every market
it serves.
Market
Currently the Internet market is crowded with competitors ranging from
small garage type operations to the large multi-national such as AOL.
Despite the inherent advantage of the large companies as to financial
resources and marketing ability, the smaller, local providers are more
than holding their own due to better customer support and the ability
to adapt to the marketplace faster and more efficiently. The current
norm for the market is to offer unlimited Internet access to dial-up
accounts for $19.95 per month. This is the program followed by AT&T,
Netcom, SpryNet, Prodigy, CompuServe, and most recently America
On-Line. These national providers tend to offer the same services at
the same price point and all appear to be struggling in their attempt
to become profitable, due in large part to their huge marketing budgets
. The primary attraction for customers to sign up with the large,
national services has been the offer of "free" time, after which the
customer is billed for monthly usage on their credit card. A large
percentage of the customers use the free time to learn the basics of
the internet and then switch to a lower cost, unrestricted access
Internet provider such as Access 1.
Strategy
Access 1 offers a pricing plan that gives the customers a tremendous
incentive to not only sign-up but to stay with Access 1 reducing the
"churn" prevalent in the larger providers. As noted above, this churn
contributes to the tremendous marketing expense needed to obtain
new customers.
Access 1 provides Internet access at $99 per year plus a $15 setup
charge based on a prepayment of the yearly subscription rate. By
offering a substantial discount to the customer, Access 1 anticipate
that in any marketplace they enter they will be the low cost provider,
allowing Access 1 the ability to attain a substantial market share.
This is the strategy currently being pursued by the company and based
on a limited marketing budget is producing approximately $5 in sales
revenue for each $1 spent on advertising versus ratios as high as $2.50
in marketing to $5 in sales for some ISP's.
The benefits for Access 1 in using this sales and marketing model
are numerous. First; they are paid up-front for one year Internet
access providing immediate cash flow. Second; we are gaining market
share and will have a larger renewal percentage due to the
substantially lower cost of access to the Internet and the customer
becoming entrenched on the system over the course of the year.
Another advantage Access 1 enjoys is the lower incremental costs
in keeping pace with increasing customer demand for higher speed
interconnect rates. This is due to expandability options built into
their existing state of the art equipment. This contributes to lower
costs per port (dial in point) than many competitors. (Many of our
competitors including the large national providers have been in
the business since the early 1990's and have a tremendous investment
in obsolete equipment.)
Expansion
The company plans to continue to expand beyond the 16 markets it
is operating in today. Within the next 30 days Access 1 will open in
Chicago, Kansas City, Houston, San Antonio, Austin and Dallas.
This pace of expansion will continue through July/99, by which point
it will be open in 50 major US markets. Opportunities to expand into
Germany, Mexico and Canada are presently under review.
Use of Proceeds
The primary purpose of going public at this time is to raise money
for expansion, advertising and marketing. The company has funded
its growth to date with internally generated cash but the pace of
development can be accelerated with new equity. The management
of Access 1 believes that they can rapidly grow this company simply
by making their business proposition known to the public. Unlimited
access, 7/24 customer support, and reliable service at the lowest
cost are compelling incentives to any potential customer. Advertising
and marketing dollars will get this message to the customer. In total
the company would like to raise between $4-6 million dollars in 1999.
Upon completion of the RTO there will be approximately 4,000,000
shares in the float on a fully diluted basis.
Opportunity
The current market provides an opportunity for an aggressive ISP to
build a national subscriber base very rapidly and efficiently using
limited capital investment and internally generated funds. It is the
intention of Access Developers Inc. to build a subscriber base of
100,000 customers within the next 18 months.
Based on recent sales and underwritings (i.e. sale of NETCOM to
MINDSPRING, GEEK-underwriting) it is anticipated that the market
should value Access 1 at between $1,000 and $2,000 per subscriber
resulting in an eventual market cap between $100 million and $200
million.
Given this scenario, there would be an excellent return to
shareholders.
For further information contact our Investor Relations Department at:
1-888-969-3377
Stockdata@access1.net
FAX: 1-800-277-0482
NEWS RELEASE
Stock Symbol: AONE
For Release@1:00 PM-PST
Friday January 15, 1999
Access Developers Inc., doing business as Access 1, is pleased to
announce that they have signed an Agreement to be acquired by IMC
VENTURES INC. In effect, this is a new listing, as IMC VENTURES
INC. is a company whose only asset is cash.
Under terms of this Agreement the name of IMC VENTURES INC. has
been changed to Access Developers Inc. and the company will trade
on the NASD OTC Bulletin Board under the symbol: AONE.
The new entity will commence trading on Tuesday, January 19, 1999,
with a "float" of 4,000,000 common shares on a fully diluted basis.
Access Developers Inc., is currently one of the fastest growing
Internet Service Providers (ISP's) in the US, having increased its
subscriber base by over 800% from fiscal 1997 to fiscal 1998. Access 1
is open in 16 major cities in the continental US and intends to be
operating in 50 major markets by July 1999.
For further information contact Investor Relations at:
1 888 969 3377
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