****NEWS RELEASE****
Orcana to acquire a business-to-business e-solution company
Orcana Resources Ltd OCN
Shares issued 19,455,642 Jun 7 close $0.18
Mon 7 Jun 99 News Release
TORONTO, ON, June 7 - Orcana Resources Limited has entered into an
agreement whereby Orcana will purchase 11.67% of Stratsys Corporation
("Stratsys") for $500,000 with an option to purchase another 23.33% of
Stratsys for $1 million and a further option to acquire all of the
remaining shares of Stratsys all subject to regulatory approval. Stratsys
is located in Toronto, employs 11 people and had revenues of over
US$560,000 in 1998. Stratsys intends to increase revenue and employees
dramatically over the next two years. Please see Stratsys' web page for
further information at stratcorp.com.
Stratsys' consults to all of Canada's major banks and has three major
insurance companies as its clients. Stratsys' customers include leading
financial institutions, telecommunications carriers, health care providers,
high tech and manufacturing companies, large retail operations and
government agencies in North America, and South East Asia.
Orcana's management has conducted extensive research into the
business-to-business market and expects Stratsys to become an industry
leader.
The acquisition of Stratsys represents a major strategic move by Orcana
into the business to business e-commerce, internet field with a focus on
legacy webifying solutions. The Legacy Transformation market is currently
said to be in excess of US$2 Billion. Stratsys' main product, Flexible
Interchange Transport System ("FITS") provides an e-commerce solution which
allows internet communications protocol to be used to replace high-cost
Value Added Networks ("VAN") for Electronic Data Interchange ("EDI") and a
distributed architecture which eliminates bottlenecks typical in a
centralized gateway architecture. Dr. Arnold Chao, Chairman and President
of Stratsys stated that, "FITS is a low cost and time effective alternative
to replacing legacy systems allowing organizations to protect their
investments in their current installed computer technologies (80% solution
for 10% of the cost)." He went on to say that, "this solution solves the
problems of webifying the data contained in Legacy system mainframes and
enables Legacy systems to conduct business over the Internet."
Orcana is pleased to announce that subject to regulatory approval it has
arranged for a private placement of 4,000,000 units at a price of $0.15 per
unit for an aggregate of $600,000.00. Each unit consists of one common
share and one-half warrant. One full warrant entitles the holder to
purchase one treasury common share of the Company at an exercise price of
$0.20 per share for one year.
This transaction is subject to regulatory approval, Board approvals and
shareholder approval.
For further information please contact:
John Tait, Secretary
Orcana Resources Limited
416-364-2015
EMAIL: jtait@ibm.net
Dr. Arnold Chao, President and CEO
Stratsys Corporation
416-971-7640
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
|
