PRESS RELEASE TODAY............
Autrex Inc.
TORONTO, Sept. 1 /CNW/ - Autrex Inc. (``AUT.A' and ``AUT.B' on the Toronto Stock Exchange) announced today that e-Net (Canada) Financial Services Ltd. (``e-Net'), the company with which Autrex plans to amalgamate, has completed a special warrant offering raising $12 million. Six (6) million special warrants at $2.00 per warrant have been subscribed for. Each special warrant is exercisable for one common share for no further consideration.
This financing, together with the previous private placement of $3.9 million will provide working capital for the development of e-Net's business. e-Net provides internet-based electronic commerce applications and networks for the financial services sector, presently focusing on the mortgage and fixed income securities trading industries. e-Net's mortgage business development is based on relationships with BCE Emergis, Cebra, and MCAP Mortgage Corporation and other mortgage lenders in Canada and the United States.
The special warrant subscriptions may be rescinded if the proposed amalgamation with Autrex is not completed by October 25, 1999.
Combined, these financings will result in the issue of 7.95 million shares at $2.00 per share. The amalgamated company will have approximately 21 million shares outstanding on a fully diluted basis. Present Autrex shareholders will receive 600,000 shares on the amalgamation (one share of the amalgamated company for every 9.81 shares of Autrex). In addition, minority shareholders of Autrex will receive a cash distribution equal to their pro-rata share of the fair market value of Autrex's net assets.
These financings will satisfy two conditions of the merger agreement, which required private placements of at least $8.0 million and net tangible assets of at least $7.5 million. The closing of the amalgamation transaction is also conditional upon the receipt of regulatory and shareholder approvals.
The special meeting of Autrex shareholders to approve the amalgamation is planned for October. Further details of the transaction will be included in the meeting materials to be sent to shareholders in advance of the special meeting.
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For further information: Autrex Inc.: E. G. Lampman, Executive Vice-President, (416) 745-3335; e-Net (Canada) Financial Services Ltd.: Mike Kraemer, Vice-President, Marketing, (416) 364-6085 Ext.106 |
