Due to the prolonged downturn in the online advertising industry over the past year the focusIN Specialty Web Network was forced to take necessary steps, like delaying member payments, to ensure its survival. Recently however, Targetnet Inc., the parent company that owned focusIN, had its loan called in by its major creditor ZAQ Interactive Solutions Inc. (see
www.zaq.com for more company information). Since it was unable to pay back that loan, Targetnet had many of its assets legally seized by ZAQ, including focusIN. While ZAQ did acquire Targetnet’s assets, it did not acquire its liabilities, which still reside with Targetnet, a company on the verge of closing. As a result, ZAQ legally has no obligation to pay off debt to any of focusIN’s members or suppliers, since these are creditors of Targetnet.
ZAQ, a Montreal-based public company, is involved in developing online relationship marketing solutions, and is listed on the Canadian CDNX stock exchange (symbol: ZAQ.M). ZAQ, who plans to pursue the business and grow focusIN in its current form, effectively has become focusIN’s new parent company. Going forward (as of September 1, 2001) publishers are paid 100% of revenue earned and all subsequent months as these payments are now the responsibility of our new parent company, ZAQ. We are back on our regular payment schedule mailing checks on the 10th of every month, 40 days after the month-end in which $50 of revenue is generated.
The online advertising industry has endured a difficult period over the past year, but it is now going through a consolidation process and we are excited about the emerging opportunity that lies ahead for surviving ad networks. At the same time we look forward to continue the working relationship between publishers, our greatest asset, and focusIN, and building the business to our mutual benefit in the near future.
