News release just out indicates things are starting to heat up.
Euro-Net's eBop enters financing agreement with eVestment
Euro-Net Investments Ltd. ERNL
Shares issued 108,761,628 Aug 23 close $0.085
Mon 23 Aug 99 News Release
Ms. Joan Purdy reports
eBop Limited, a 50-per-cent owned subsidiary of Euro-Net Investments, has
entered into an agreement with eVestment company plc of the United Kingdom
under which eVestment will assist in raising additional finance for eBop
(the financing agreement) to be used to finance future development of the
eBop community Web site and execution of an extensive marketing and
promotion campaign. The principals of eVestment are familiar with the
fundraising process and have led equity financings resulting in the public
listing of a number of companies on the London Stock Exchange. The strategy
of eVestment and associates is to identify potentially valuable businesses
at the preflotation stage and take a substantial stake. Immediately
following this, there is an intention to prepare the business for flotation
at the earliest opportunity, usually raising substantial further capital
for the business. eVestment intends to prepare eBop for raising finance
through successive fundraising efforts beginning with two private
placements totalling 1.5 million and concluding with a public flotation
later in the year with eVestment itself providing the first 250,000 of this
financing by way of equity investment.
As previously announced, the company currently owns a 50-per-cent interest
in the issued and outstanding shares of eBOP and has an option to acquire
the remaining 50 per cent of the issued and outstanding shares of eBOP from
the eBop founders in consideration of the payment of the sum of $9,750,000
until April 23, 2001. Under the terms of the financing agreement and to
assist with the financing, the company has agreed to cancel the option in
consideration of:
the payment to the company of nominal consideration of one British pound by
the eBop founders;
the payment to the company of the sum of 25,000 British pounds on or before
Sept. 15, 1999;
the issuance of 2.5 million units, each unit comprising one common share of
eBOP of one pence each and one common share purchase warrant entitling the
company to purchase an additional common share of eBOP at six pence per
share at any time on or before June 30, 2001; and
the execution of a promissory note in the amount of 50,000 British pounds
convertible at the request of the company into common shares of eBOP at the
price at which shares are issued in a financing to be completed if and when
eBop is taken public in the United Kingdom. If the promissory note is not
converted, the note will begin accruing in interest at an annual rate of 4
per cent upon the earlier of the date eBop is taken public or Sept. 15,
2000. The total principal and interest will be payable upon Sept. 15, 2003,
should the note not be converted. After the flotation date, the note is
convertible at the request of the company.
Taking into account the different stages of this transaction, the company
will retain approximately 10 per cent of eBOP on a fully diluted basis
postpublic flotation which represents 20 per cent of its original position.
The company feels that the completion of this financing will enhance the
ability of eBOP to establish a brand name in the United Kingdom.
As part of their standard policies, CDN will review this transaction to
ensure that the company continues to meet CDN quotation requirements
including the requirement that the company be engaged in an active
business.
In addition to its investment in eBop, the company intends to invest in a
number of other projects that focus on the delivery of products or services
over the Internet. Currently, the company is reviewing a number of projects
and will update shareholders accordingly. |
