FutureIT Inc.

Published December 8th, 2009 - 02:07 GMT

FutureIT Inc. Announces That its Parent Company, Datasafe Group Ltd., has Notified
the Company That it Will Cease to Provide Interim Financing to the Company Pending
the Completion of DataSafe's Proposed Financing

LOD, Israel, December 7/PRNewswire-FirstCall/ --     FutureIT Inc. (FITI.OB), a
leading provider of software
solutions for the automated and effective management of Microsoft SQL
servers, today reported it was notified by its parent company, DataSafe Group
Ltd., that DataSafe Group Ltd. will cease to provide financing to FutureIT,
subject to DataSafe Group Ltd.'s receipt of additional financing. In November
2009, the Company signed an agreement with DataSafe Group Ltd., pursuant to
which DataSafe Group Ltd. agreed to provide $500,000 in loans to the Company,
effective as of October 1, 2009, bearing annual interest of 10%. To date,
DataSafe Group Ltd. the owner of 65% of the Company's outstanding shares of
common stock, has advanced approximately $1.85 million in loans to the
Company.

 

    While the Company hopes that DataSafe will be successful in
its financing activity, the Company's Board of Directors has instructed

management to seek alternative financing that will allow FutureIT to continue
in business and reach break-even operations. There can be no assurance given
that FutureIT will be successful in its efforts or that DataSafe will provide
future financing to FutureIT. Previously, FutureIT's independent public
accounting firm issued an opinion on the Company's consolidated financial
statements that states that the Company's consolidated financial statements
were prepared assuming it will continue as a going concern and further states
that its recurring losses from operations, stockholders' deficit and
inability to generate sufficient cash flow to meet its obligations and
sustain its operations raise substantial doubt about its ability to continue
as a going concern.

 


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