VALU-NET BOARD APPROVES ACQUISITION OF GLOBAL WHOLESALE NETWORK.COM
Good morning to you all. On April 27, 1999 we reported Valu-net (VNE.ASE) had signed a letter of intent to acquire Global Wholesale Network.com, (GWN) in exchange for up to 6 million shares in VNE stock. The company announced yesterday that it had received approval for the acquisition from its Board of Directors and all that remains is final approval from the Alberta Stock Exchange. We understand approval from the ASE will not be an issue.
For the five months ended May 31, 1999 GWN reported sales of $4.1 million. The VNE press release of April 27 states 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. Thus, the company is on target to achieve revenues in excess of $20 million, which will be attributable to VNE as soon as the deal is completed.
We view this acquisition by VNE as very positive and will provide the necessary revenues to propel the company into its next level of growth. As such, we continue to remain extremely confident in the future of this company.
Please find enclosed a copy of the press release issued on June 9.
Have a great day.
Regards,
AGORA Internet Relations Corp.
agoracorp.com
Wednesday June 9, 4:02 pm Eastern Time
Company Press Release
Valu-net Approves Acquisition Of Global Wholesale Network.com
MARKHAM, ONTARIO--Valu-net Corporation (ASE: VNE - news) today announced board approval of its agreement to acquire privately held Global Wholesale Network.com, based in Toronto, Ontario. This acquisition underscores Valu-net's Internet marketing and electronic
commerce strategy and its objective is to produce one of the most comprehensive online distribution and purchasing systems for consumer and industrial goods.
Global Wholesale Network.com sells high volume consumer and industrial goods to established retail and wholesale chain stores through conventional marketing and the Internet
globalwholesalenetwork.com
On April 27, 1999, Valu-net announced that it had signed a letter of intent to acquire Global Wholesale Network.com in exchange for up to 6 million shares in Valu-net common stock. Under the terms of the agreement, 600,000 common shares will be issued at closing, and a further 600,000 common shares (to a maximum of a further 5,400,000 common shares) will be issued each time Global Wholesale Network.com acknowledges revenues of $2,000,000 (Cdn.) and net profits of
$30,000 (Cdn.). The acquisition agreement was subject to approval from the Board of Directors, which has now been received.
The acquisition will extend Valu-net's expertise in business to business distribution and purchasing systems. Global Wholesale Network.com has shipped, for the five month period ended May 31, 1999, in excess of $4,100,000 (Cdn.) of goods to Canadian, U.S. and International customers. Over the coming months, Valu-net plans to expand the Global Wholesale Network.com web site to include new business applications and revenue centres that will be available to the global market
Completion of the transaction is subject to a number of conditions including regulatory approvals. It is anticipated the transaction will close, on or about, June 30, 1999.
About Valu-net
Valu-net 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 provides Internet Service Providers and both traditional and on-line businesses with integrated Internet marketing programs,proprietary electronic commerce and transactions technologies in order to advance their business and marketing goals. Valu-net is also a founding member of The
eMerge Alliance (www.emergealliance.org), offering businesses cost effective, end to end electronic commerce services. Further information is available through Valu-net's corporate web site at
vncorp.com.
Contact:
Valu-net Corporation
(905) 474-5100
(905) 474-9843
Toll Free 1-800-558-9069
E-Mail - investrelations@vncorp.com
DISCLOSURE STATEMENT
AGORA INTERNET RELATIONS CORP. receives a monthly monetary fee from Valu-net Corporation. for the purposes of communicating with Internet shareholders - both current and prospective - to increase awareness of and interest in Valu-net Corporation. AGORA INTERNET RELATIONS CORP activities are aimed purely at keeping their clients' shareholders and prospective shareholders informed about their company. These activities consist of providing investors with previously disclosed factual information concerning the company, comments from company principals, copies of material that has been filed with regulatory authorities, comments prepared by registered brokers or investment dealers and material published in newspapers, magazines or journals.
AGORA INTERNET RELATIONS CORP does not participate in the maintenance of an orderly market in their client's securities, nor is required, or receives an incentive for, the maintenance or achievement of a price or trading volume for their client's securities at a certain level, for a specified period of time or by a certain date. AGORA INTERNET RELATIONS CORP. may, at any time, own shares in the company. |
