***VALU-NET ADDS $24 MILLION IN REVENUES BY ACQUISITION***
Bulletin # APR99-08
ONCE YOU'VE READ THE HEADLINES, COME TO AGORA FOR THE NEWS
Good morning to you all. Please find enclosed the following press release, in which Valu-net (VNE.ASE) has announced the acquisition of a company with $24 Million in revenues. The deal is an "all-stock" deal that will see VNE issue 6 million shares in return.
It is important to note the companies have signed a letter of intent and all that remains is completion of due diligence and final approval from the Board of Directors and The Alberta
Stock Exchange. Short of any surprises in the final due diligence, we expect this deal to close in the near future.
The company to be acquired, Global Wholesale Network.com, is cash-flow positive and conducts business both over the Internet and through an established wholesale/retail chain. The combination with Valu-net can only serve to increase the company's ability to sell product over the Internet and add to its current annual revenues of $24 Million.
We look forward to providing you with more news about this deal over the coming days. In the meantime, we are pleased to see that VNE continues to take great forward strides in building one of Canada's most prominent Internet/e-commerce companies. With revenues of $24 Million, VNE's status will now change from a small-cap Internet stock to a mid-cap, revenue generating e-commerce company.
Please review the press release for the complete story.
Regards,
AGORA Internet Relations Corp.
VALU-NET TO ACQUIRE GLOBAL WHOLESALE NETWORK.com
-- Strategic Purchase Extends the Company's Market Share and Revenue Base--
Markham, Ontario April 27, 1999 Valu-net Corporation (ASE: VNE), today
announced it has signed a letter of intent to acquire privately-held Global
Wholesale Network.com of Toronto, Ontario for up to 6 million shares in
Valu-net common stock. Global Wholesale Network.com sells high volume
consumer and industrial goods to established retail and wholesale chain
stores through conventional marketing and also on the Internet
(http://www.globalwholesalenetwork.com).
"The shift from the conventional marketplace to the Internet has been
challenging for many mid and large-size businesses. As a recognized leader
in Internet marketing and electronic commerce, Valu-net is regularly called
upon to participate in online joint ventures and strategic alliances," said
David Lucatch, CEO and President of Valu-net Corporation.
Launched in January 1999, Global Wholesale Network.com is cash-flow positive
and is currently shipping over $2,000,000 (Cdn.) of goods per month to
Canadian, U.S. and International customers. This strategic acquisition by
Valu-net should allow Global Wholesale Network.com to accelerate its revenue
base substantially through the Internet.
The integration of Global Wholesale Network.com's distribution systems and
Valu-net's electronic commerce and Internet marketing expertise should
further extend Global Wholesale Network.com's market share and produce one
of the most comprehensive online business to business distribution and
purchasing systems.
Valu-net will expand the current online information and merchandising web
site that matches buyers and sellers product requests and facilitates the
purchase and selling of goods from one party to another. The web site will
offer supplier and customer members easy access to the global market through
the exchange of information via the Internet.
The acquisition is subject to, among other things, completion of due
diligence and final approval from the Board of Directors and The Alberta
Stock Exchange. Under the terms of the acquisition, the shares of Valu-net
stock will be issued to the current owners of Global Wholesale Network.com
in various phases based on achieving established revenue and margin targets.
About Valu-net
Valu-net Corporation, a publicly traded corporation on the Alberta Stock
Exchange, (symbol "VNE") is a leading marketing and technology company
providing a complete range of services designed to meet the growing demand
for Internet marketing and electronic commerce. Valu-net has established
relationships with leading Internet Service Providers and consumer marketing
companies to develop online consumer and business applications. Valu-net is
also a founding member of The eMerge Alliance (www.emergealliance.org),
offering businesses cost effective, end to end electronic commerce solution.
Further information is available through Valu-net's corporate web site at
www.vncorp.com.
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The Alberta Stock Exchange has neither approved nor disapproved the
information herein contained.
Media Contact:
Brad Friesen
GENERATORIDEAWORKS'
(416) 413-7570
brad.friesen@generator.ca
Company Contact:
David Lucatch, President & CEO
Valu-Net Corporation
(905) 474-5100
d.lucatch@vncorp.com
For Valu-Net Investor Relations contact:
Phone (905) 474-5100
Toll Free 1-800-558-9069
Fax: (905) 474-9843
E-Mail - investrelations@vncorp.com
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