Valu-Net completes $3,000,000 private placement
CANADIAN VENTURE EXCHANGE SYMBOL: VNE
TORONTO, Feb. 9 /CNW/ - Valu-net Corporation ("Valu-net") (CDNX: VNE) -
Valu-net Corporation is pleased to announce that the Company has completed its
private placement of 2.5 million units at a price of $1.20 CDN per unit,
raising gross proceeds of $3,000,000. Each unit is comprised of one common
share and one common share purchase warrant. Each common share purchase
warrant will entitle the holder to acquire one common share of the Company at
an exercise price of $1.85 for eighteen months following the date of closing
of the private placement.
Proceeds will be used to repay certain indebtedness, for market and
product development and for other general working capital purposes.
As reported in a company announcement on January 20, 2000, 25% of the
funds raised in the placement will be made available to the Company upon
closing of the transaction and the remaining net proceeds will be placed in
escrow pending shareholder and regulatory approval and completion of the
Applied Innovations Group Inc. transaction by no later than April 17, 2000. In
the event such condition is not satisfied investors will be entitled to be
refunded such monies placed in escrow.
On November 4, 1999, Valu-net Corporation and Applied Innovations Group
Inc. announced the signing of agreements expanding the business relationship
between the two firms to include reciprocal equity investments, as well as
exclusive, revenue based e-commerce services to AI Group companies, including
Bid Freight Global.
The transaction between Valu-net and Applied Innovations is subject to
the approval of Valu-net shareholders and receipt of all necessary regulatory
approvals and certain conditions.
About Valu-net Corporation
Founded in 1995, Valu-net develops online marketing and electronic
commerce programs for selling products over the Internet. This expertise is
used to directly create Internet business initiatives through Valu-net's own
divisions, joint ventures, and industry partnerships. In addition, Valu-net is
able to offer merchants a complete range of business enabling services to meet
the growing demand for secure and effective electronic commerce. These
services are available to merchants directly through Valu-net or indirectly
through agreements with agencies and resellers. Valu-net's division, The
eMerge Alliance (www.emergealliance.org) offers merchants easy entry into the
electronic commerce market with a turnkey solution that is both scalable and
cost-effective. Further information is available through Valu-net's corporate
web site at www.vncorp.com.
About Applied Innovations Group Inc.
AI Group is a private company with global business operations through
offices in Canada, the United States, and Europe. The company is engaged in
the supply and reallocation of large volumes of computer and related hardware.
AI's management brings with it fifteen years of unparalleled computer product
sourcing excellence and experience that has positioned AI Group among the top
five distributors in its market sector. AI Group also includes two leading
edge e-commerce companies, Open Portal and Bid Freight. Open Portal's
proprietary database and content management solution is designed to benefit
the entire value chain of selected industries where the ability to publish and
maintain complete online lists of products, as well as automated catalog
maintenance is essential. Bid Freight is a transportation exchange and is in
the business of transacting land, sea and airfreight shipments using the
Internet. Bid Freight's proprietary software provides a total logistics
management solution that supplies automated methods for shipment placement,
bidding, negotiation, scheduling, delivery notification and payment settlement
through a centralized, real time information network. Applied Innovations can
be reached online at www.aiicorp.com
Valu-net trades on the Canadian Venture Exchange under the symbol VNE and
has approximately 40 million shares outstanding.
The Canadian Venture Exchange has neither approved nor disapproved the
information herein contained.
%SEDAR: 00008990E
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For further information: VALU-NET INVESTOR RELATIONS CONTACT: Jay
Hussey, The Equicom Group Inc., Phone (416) 815-0700 ext. 225, Fax
(416) 815-0080, jhussey@equicomgroup.com; VALU-NET MEDIA RELATIONS CONTACT:
Brad Friesen, Friesen Strategic Inc., Phone (416) 921-6789, Fax
(416) 921-6121, brad@friesenstrategic.com
VALU-NET CORPORATION has 32 releases in this database.
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