Beautifully engraved Certificate from eToys.com
in 2001. This historic document was printed by the Security Columbian Banknote Company and has an
ornate border around it with a vignette of the famous company logo with an underprint of a toy computer. This item has the printed signatures of the company's officers.
This certificate has been next to impossible for us to find. A black marker was used on the back of the certificate which shows through on the front, otherwise in fine condition. This is one Dot Com you won't want to miss.
Once a Wall Street favorite with a market capitalization approaching $10 billion, the Santa Monica, California based eToys has filed for protection from its creditors in U.S. Bankruptcy Court in Delaware. At that time, the company also said its outstanding equity securities, including its common stock and Series D preferred stock, have no value and that its stock was being delisted by Nasdaq. The company gave notice to its last remaining employees in February.
These certificates are representative of an era similar to the gold rush of 150 years ago. There will be no more of these same type of certificates issued due to eToys' bankruptcy, delisting and the closure of the company's website and business.
LOS ANGELES, February 26, 2001 - eToys Inc. (NASDAQ: ETYS) today announced that it plans to file for protection under federal bankruptcy law within approximately the next five to 10 days. The company said its decision was based on the results to date of its efforts to pursue strategic alternatives and its conclusion that, under any scenario, its outstanding liabilities, which totaled approximately $274.0 million as of January 31, 2001, will substantially exceed the value of any proceeds or assets that may be received in a strategic transaction. Accordingly, the company has determined that it has no alternative other than to file for bankruptcy protection.
The company also said that, in light of these facts, it has concluded that its outstanding equity securities, including both its common stock and its Series D preferred stock, have no value. The company strongly encouraged anyone considering an investment in these securities to consider its determination that they are worthless.
In addition, the company said it has received a notice from Nasdaq that it no longer meets the minimum net tangible assets requirement for The Nasdaq National Market. The company does not believe that it will be able to regain compliance with this requirement, and it has notified Nasdaq of this fact. Accordingly, the company anticipates that its common stock will be delisted from trading in the very near term, certainly sooner than the previously expected date of May 2, 2001.
The company reiterated that its cash, cash equivalents and cash that may be generated from operations will be sufficient to continue its operations only to March 31, 2001 at the latest and that it has provided job elimination notices to all of its employees, with termination dates extending up to April 6, 2001. The company anticipates that it will close the eToys.com Web site on or about March 8, 2001 and that, thereafter, the company will focus solely on the winding down of its business and the liquidation of its assets.
The company also announced that, following authorization of the bankruptcy filing, three of its directors, Tony Hung, Michael Moritz and Dan Nova, have resigned from the board effective today. The remaining directors consist of Edward C. Lenk, the Chairman of the Board and Chief Executive Officer of the company, and Peter Hart.