1-20-2000
Rightsmarket.com Inc. $5.4 Million Equity Financing To Be Fully Subscribed
Calgary, Alberta--
RightsMarket.com Inc. is pleased to announce that it has been
advised that its previously announced Special Warrant financing
with Acumen Capital Finance partners Limited as lead agent and
including Yorkton Securities Inc. and Goepel McDermid Inc. (the
"Agents") will be fully subscribed. The Agents have advised that
a total of 4 million Special Warrants will be placed at a price
of $1.35 each, for gross proceeds of $5.4 million.
Each Special Warrant shall be exercisable, for no additional
consideration for one common share of RightsMarket and 0.75 of
one common share purchase warrant ("Warrant"), provided that if
RightsMarket does not receive a receipt for a final prospectus
from the securities commissions in each of the provinces in which
the Special Warrants are sold by 90 days of the closing of the
offering, the holders of Special Warrants in the applicable
province will be entitled to receive 1.1 Common Shares and 0.75
of a Warrant for each Special Warrant at no additional cost. Each
whole Warrant shall be exercisable at a price of $1.85 per
Warrant for a period of 15 months from the closing date, which is
anticipated to be on or about January 28, 2000 subject to all
necessary legal and regulatory approvals.
50% of the proceeds of the private placement will be released to
the Corporation on the closing of the private placement and the
remaining 50% of the proceeds shall be released to the
Corporation upon: (i) receiving a receipt for a final prospectus
which qualifies the distribution of the common shares and
purchase warrants underlying the Special Warrants (the
"Qualification Condition"); and (ii) delivery to the escrow
agent by the Corporation and Acumen of a joint certificate
confirming that the RightsMarket technology is hosted and
functioning on the Corporation's website (the "Development
Condition").
If either the Qualification Condition or the Development
Condition are not satisfied on or before 90 days from the closing
date, purchasers of Special Warrants shall be entitled to have
the Corporation repurchase from the escrowed proceeds, up to 50%
of the original number of Special Warrants, at a repurchase price
per Special Warrant equal to the issue price plus a pro rata
portion of the interest accrued thereon.
RightsMarket is a high technology company based in Calgary,
Alberta specializing in digital rights management. Its principal
product is RightsMarket technology, one of the first online
solutions for protecting digital content on the Internet.
RightsMarket dramatically increases security, reduces
distribution costs and speeds delivery time to the consumer. The
technology facilitates the commercial distribution of digital
content by encrypting it, permitting only validated use, metering
its use, and creating a transaction log for reporting and
billing. The technology is "persistent" in that the digital
content must be unlocked each time it is used. RightsMarket is a
trademark of RightsMarket.com Inc.
For more information about RightsMarket please visit our website
at www.RightsMarket.com.
Investor relations contacts:
Lindsay Moir, President Rob Solinger, CFO
(403) 571-1835 or (403) 571-1191 (Direct) (403) 571-1839
email: moirl@RightsMarket.com email:rob@Rights
Market.com
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any
jurisdiction. The Special Warrants offered will not be and have
not been registered under the United States Securities Act of
1933 and may not be offered or sold in the United States or to
U.S.Persons absent registration or an applicable exemption from
the registration requirement.
The Canadian Venture Exchange has neither approved nor
disapproved the information contained herein. |
