Simmonds Capital Agrees To Sell eieiHome.com To Hycomp, I
B: Simmonds Capital Agrees To Sell eieiHome.com To Hycomp, Inc.
TORONTO, ONTARIO AND NEW YORK, NEW YORK--(Canadian Corp News, August
16, 1999)--Simmonds Capital Limited (TSE:SMM) and HyComp, Inc.
(OTCBB:HYCP) announced today that they have signed a Letter of Intent
whereby HyComp, Inc. ("HyComp") will acquire all of thmonds Capital
Limited ("SCL"). As consideration, SCL will receive 7.5 million common
shares of HyComp, US$500,000 in a short term note, US$2 million in a 3
1/2 year convertible debenture, and five year warrants to purchase 5
million HyComp common shares. The debenture is convertible to HyComp
common shares at US$1.00 per share. The warrants are exercisable at
prices from US$1.00 to US$3.00 per share. Completion of the proposed
transaction is subject to a number of conditions, including but
not limited to satisfactory due diligence by HyComp and SCL and the
completion of definitive documentation. The parties mutually intend to
exert reasonable commercial efforts to conclude the proposed
transaction by September 30, 1999.eieiHome.com I nc. ("eieiHome") is a
wholly owned subsidiary of SCL. eieiHome operates an internet service
and information site, providing information and related services for
homeowners, homebuyers, and home service providers. The service was
launched earlier this year to consumers in the Toronto and Vancouver
markets. It is planned that the service will be expanded to additional
Canadian markets and into the United States. eieiHome receives
advertising revenue from national accounts for banner advertising pl us
listings for local merchant and service companies.
Simmonds Capital Limited is a diversified management company with
strategic investments in contract manufacturing, electronics
distribution, wireless communications, and internet service markets
including both equity investments and wholly owned opera
tionHyComp, Inc. was formerly a producer of thin film hybrid circuits,
resistor networks and components. In March 1999, the assets and certain
liabilities of this business were sold to another public company.
Currently there are 10,047,070 HyComp co mmon shares issued and
outstanding, of which 88 percent are owned by a subsidiary of Microtel
International, Inc. ("Microtel") of Ontario, California. Upon
completion of the proposed transaction, SCL will own a 43 percent
interest in HyComp or 57 perc
ent on a fully diluted basis assuming the exercise of the convertible
debenture and the warrants.Upon completion of the eieiHome transaction,
Microtel has agreed to sell its common shareholding of HyComp to Mr.
John G. Simmonds and a group of privat
e investors who are interested in this new internet opportunity.This
release contains forward-looking statements, which are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Investors are cautioned t
hat all forward-looking statements involve risk and uncertainties.
Toronto Stock Exchange SYMBOL: SMM |
