Consolidated Magna retains Wolverton to sponsor CoyoteNet deal
Consolidated Magna Ventures Ltd CMV
Shares issued 21,484,464 Jun 15 close $0.15
Wed 7 Jul 99 News Release
Mr. Robert Archer reports
CoyoteNet Inc. has received orders in the month of June to install an
additional 20 Internet terminals. This will bring the total operating
terminals up to 50 in July, a 67-per-cent increase from the 30 terminals
operating at the end of May. CoyoteNet has recorded an average 50-per-cent
growth rate in revenues every three months since startup last year.
Eleven new terminals have already been shipped and are currently being
installed in Vancouver, Victoria, Lake Louise, Penticton and Toronto.
Another nine terminals are on order for Vancouver and Banff.
In Stockwatch June 17, Magna announced that it had signed an option
agreement to acquire CoyoteNet Inc., an Internet access company. CoyoteNet
Inc. is a privately owned, Vancouver-based company in the business of
providing coin-operated Internet terminals in high-traffic locations for
public access to the Internet, principally for collecting and sending
E-mail, checking stock quotes or surfing the Net.
Magna has an extension from CoyoteNet until Aug. 31, 1999, to complete its
due diligence and arrange a $500,000 financing for CoyoteNet in order to
exercise its option to acquire CoyoteNet. CoyoteNet has offered Magna 1.25
million shares at 40 cents in return for the $500,000 financing.
The Vancouver Stock Exchange halted Magna's stock from trading pending its
review of additional information regarding CoyoteNet. The VSE expressed its
concern that Magna's shares may trade up on the fundamentals of CoyoteNet
and it had no CoyoteNet documentation on file for public disclosure.
At the request of the VSE, Magna retained a member firm, Wolverton
Securities, to complete an initial review of Magna and CoyoteNet and
sponsor the proposed transaction. Wolverton has now completed its review
and agreed to act as Magna's sponsor. The CoyoteNet business plan and
financial statements are now available for public viewing at Magna's
offices during normal business hours, or the CoyoteNet Web site,
coyotenet.ca .
Wolverton has also agreed to act as agent for the brokered private
placement financing, which is now increased to $300,000, or two million
units at 15 cents per unit, each unit to consist of one common share and
one-half of a warrant.
The VSE has repriced these warrants so that one full warrant gives the
unitholder the right to purchase one additional common share at 30 cents
within a one-year period. Company insiders may subscribe for a portion of
this offering if approved by the VSE. Magna had previously agreed to settle
$300,000 in debts for stock in the company, consisting of two million
shares at 15 cents. The majority of this debt is to company insiders and
the 15 cents debt settlement will only proceed if approved by the VSE.
CoyoteNet shareholders will receive mostly escrowed shares subject to
release provisions according to VSE policy. Magna has also agreed to pay
introduction fees of $10,000 upon the closing of the transaction to the
arm's-length parties who introduced Magna to CoyoteNet.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
