ITEX�s White Responds to Western Sizzlin�s Unsolicited Tender Offer
Changes
ITEX
Corporation (OTCBB:ITEX), a leading marketplace for cashless
business transactions in North America, has issued the following
statement regarding Western Sizzlin�s (NASDAQ:WEST) decision to
remove conditions to its unsolicited exchange offer to acquire
shares of ITEX for consideration consisting solely of shares of
Western Sizzlin common stock:
�The
situation has not changed -- our Board of Directors continues to
believe that Western Sizzlin�s bid is wholly inadequate and
recommends that shareholders NOT tender their shares. Not only is
the offer worth less now than originally announced, it does not
reflect the true value of ITEX or its growth prospects. Furthermore,
the value of the consideration being offered is uncertain, illiquid,
and fully dependent on the future value of Western Sizzlin common
stock. For the few ITEX shareholders that have tendered, we urge
them to withdraw their shares by notifying the Western Sizzlin
exchange agent immediately, as they will lose the right to withdraw
tomorrow (3/26/08) afternoon.�
Steven White,
ITEX Chairman/CEO explained, �Demonstrating the volatility and
illiquidity of Western Sizzlin common stock, since the exchange
offer commenced on December 27, 2007, the stock price has declined
by approximately 12%; there have been nine days with no trading
activity, and at one point their stock hit a low of $12.80.
�Western
Sizzlin believed that obtaining its recent NASDAQ listing would
result in enhanced liquidity. But lack of liquidity continues to
weigh on its stock. ITEX�s stock continues to have almost twenty
times the average daily trading volume of Western Sizzlin.
�Western
Sizzlin has extended its exchange offer twice with the latest
extension and shareholder withdrawal rights set to expire on March
26, 2008. The firm has continued to pursue its offer with minimal
success. The vast majority of ITEX shareholders have demonstrated
that they recognize the offer is not beneficial to them.
�On March 13,
2008, Western Sizzlin dropped many of the conditions related to its
offer, including a previous requirement that it acquire 60% of
ITEX�s shares before the exchange could take place,� White
continued. �Essentially admitting failure, Western Sizzlin can now
accept whatever shares are tendered with no minimum. More concerning
to me is that the offer is scheduled to close, terminating ITEX
shareholder withdrawal rights, three business days before Western
Sizzlin must file its Form 10-K disclosing its operating results for
the 2007 fiscal year. Thus, our shareholders are placed in the
position of having to make an irrevocable decision shortly before
the release of information that might be material.�
(Schedule 14D-9 and other public filings made by ITEX with the SEC
are available without charge from
http://www.sec.gov, or from
http://www.itex.com.)