Spartacus to raise $2-million privately
Spartacus Capital Inc SCI
Shares issued 2,500,000 Jan 14 close $0.75
Tue 25 Jan 2000 News Release
Mr. Mark Brown reports further to news in Stockwatch Jan. 17, 2000, the company has arranged a
brokered private placement of three million special warrants to raise gross
proceeds of $1.95-million.
Global Securities Corp. has agreed to act as
agent for this financing. The private placement will satisfy a condition in
the letter of intent with Mycitymarket.com Inc. that Spartacus raise
financing for the expansion and operations of Mycitymarket.com. The special
warrants will be sold through Global at a price of 65 cents each. A special
warrant will be exercisable into one common share, without further payment,
upon the earlier of the issuance of a receipt by the B.C. Securities
Commission for a prospectus to be filed by Spartacus, the filing of an
annual information form, or 12 months from the date of issuance of the
special warrants. Closing of the private placement is subject to the
completion of the acquisition of Mycitymarket.com and acceptance for filing
by the Canadian Venture Exchange. These securities will not be registered
with the U.S. Securities and Exchange Commission and may not be offered in
the United States without registration or an applicable exemption from
registration requirements.
On Jan. 17, 2000, Spartacus announced in Stockwatch that a letter of intent
was signed to acquire 100 per cent of Mycitymarket.com. Mycitymarket.com is
an innovative e-commerce marketing company, building local marketplaces on
the Internet. Existing retail merchants are provided with a Web presence,
e-commerce capabilities and marketing directly focused on building local
Web traffic.
Subject to completion of satisfactory due diligence, Global has agreed to
act as sponsor with respect to the acquisition of Mycitymarket.com by
Spartacus. An agreement to act as sponsor should not be construed as any
assurance with respect to the merits of the acquisition or the likelihood
of completion. Spartacus will pay Global a sponsorship fee of $15,000, a
corporate finance fee of 0.5 per cent and commission of 7.5 per cent.
Spartacus will also issue Global warrants to purchase common shares for 10
per cent of this private placement.
A finder's fee of $25,000 and 25,000 common shares will be paid upon
completion of the transaction. The common shares of Spartacus to be issued
to the shareholders of Mycitymarket.com will be subject to escrow and/or
hold periods in accordance with the Canadian Venture Exchange and
applicable securities laws. Further, one million of the common shares to be
issued to the principals of Mycitymarket.com will be subject to certain
additional performance-related escrow criteria, as agreed in the letter of
intent.
Spartacus has scheduled a shareholders meeting for March 29, 2000, at 2
p.m. to approve the acquisition of Mycitymarket.com, the change of name of
the company to Mycitymarket.com Inc. and to adopt a stock option plan. Upon
completion of the transaction, a new stock symbol will be assigned.
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