Thursday Sep 2 1999
Mr. Peter Kozicz reports
GTR Group (formerly Games Trader Inc.) has entered into an
agreement to raise $21,037,500 through a private placement of
4,675,000 special warrants at $4.50. Each special warrant
will entitle the holder to acquire, for no additional cost, one
common share and one-half of a share-purchase warrant
exercisable for two years. Each whole warrant shall entitle
the holder to acquire one share at an exercise price of $5.00
per share. The financing is being led by Yorkton Securities
Inc., and includes Taurus Capital Markets Ltd., and Acumen
Capital Finance Partners Limited. The offering is expected to
close on Sept. 10, 1999, and is subject to regulatory approval.
Proceeds will primarily be used to finance the acquisition of
Mad Catz Inc., the second largest, third-party video game
accessories company in the United States, with calendar 1998
revenue of more than $60-million (U.S.).
Peter Kozicz, president and chief executive officer of GTR,
said, "This private placement will allow us to complete the
acquisition of Mad Catz and will give ample financial
resources to finance the growth of our newly merged
businesses."
The company will use its best efforts to obtain a receipt for a
prospectus qualifying the distribution of the underlying
common shares and warrants within 120 days following the
closing date. If a receipt for the prospectus is not obtained
within this 120-day period, special warrant holders will be
entitled to receive 1.1 shares and 0.55 share-purchase
warrants upon the exercise of each special warrant.
Mr. Louis Nagy reports
GTR Group (formerly Games Trader Inc.) has entered into an
agreement to acquire all of the issued and outstanding shares
of Mad Catz Inc. for $30-million (U.S.), of which $5-million
(U.S.) is subject to an earn-out based on the calendar 1999
financial performance of Mad Catz.
The purchase price will be satisfied using a combination of
cash and GTR shares to be issued over a period of several
years following the closing date. Closing of this transaction is
anticipated to occur on Sept. 10, 1999.
Mad Catz is the second largest, third-party video game
accessories company in the United States, with calendar 1998
revenue of more than $60-million (U.S.). According to Peter
Kozicz, chief executive officer of GTR: "The acquisition of
Mad Catz represents a very important milestone for GTR and
significantly advances the company's stated goal of becoming
a diversified interactive entertainment company. Mad Catz
adds substantial scale to our operations and we expect this
acquisition to be accretive to earnings in the current fiscal
year." Mr. Kozicz added: "This acquisition also provides
GTR with a number of important benefits, including the ability
to exploit significant channel synergies and the expansion of
GTR's distribution capability into Europe and the U.K. We
also expect to realize cost savings from the combination of our
sales and distribution systems."
Jim Nakamura, president of Mad Catz stated: "Mad Catz is
extremely excited about the prospects of partnering with GTR.
We could not have found a more compatible organization to
join forces with, as our business philosophies and culture are
very similar. The acquisition by GTR provides Mad Catz with
the vital growth capital necessary to continue its explosive
worldwide growth."
WARNING: The company relies on litigation protection for
"forward-looking" statements. |
