****NEWS RELEASE****
Simmonds Capital acquiring Internet service company
Simmonds Capital Ltd SMM
Shares issued 19,551,951 Jun 21 close $0.81
Mon 21 Jun 99 News Release
Mr. David O'Kell reports
Simmonds Capital has reached agreement on final terms to acquire ChargNet
Inc., an on-line Internet service and e-commerce company. Upon completion
of the acquisition, SCL will acquire all of the common and preferred shares
of ChargNet in exchange for 1.8 million common shares of SCL and warrants
to purchase 100,000 SCL common shares at an exercise price of not less than
90 cents per share. Under the terms of the agreement, 80 per cent of the
SCL common shares issued for the acquisition are subject to escrow to be
released over a period of one year. SCL intends to change the name of
ChargNet to eieiHome.com, which will be a wholly owned subsidiary of SCL.
eieiHome operates an Internet service and information site, providing
information and related services for homeowners, home buyers, and home
service providers. The service is being launched this month to consumers in
the Toronto and Vancouver markets. Currently, eieiHome has 55 national
accounts for banner advertising plus listings for over 900 local merchant
and service companies.
John Simmonds, chief executive officer of Simmonds Capital, stated: "We
have been working with the eieiHome management for the past eight months,
on the development of the service and plans for the eieiHome launch. It is
an exciting Internet product filling a useful niche for homeowners and home
service providers. Our plan is to build on the Toronto and Vancouver
marketing launch to roll the service out to other Canadian markets and into
the United States."
SCL has also completed the sale by private placement of 1,996,000 common
shares issued from treasury at a price of 50 cents per share. One-third of
the issue was purchased by employees and the balance of the issue was
purchased by independent investors, all of whom are non-insiders to the
company. The net proceeds will be used for working capital. After
completion of the private placement and the ChargNet acquisition, there are
19,551,951 common shares issued and outstanding.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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