Cons Magna arranges first block of CoyoteNet financing
Consolidated Magna Ventures Ltd CMV
Shares issued 21,484,464 Sep 7 close $0.06
Wed 8 Sept 99 News Release
Mr. Robert Archer reports
Consolidated Magna has successfully arranged for the first tranche of
financing into CoyoteNet Inc., pursuant to the agreement to amalgamate the
two companies. As a result, CoyoteNet is now fully financed to complete the
rollout of 100 public access Internet terminals by year-end.
Magna and CoyoteNet have therefore agreed to waive all future deadlines,
including the Sept. 15, date for the exercise of the option. This will
allow both companies to focus on financing the business plan of CoyoteNet
rather than arbitrary deadlines. An offering memorandum is being prepared
for the raising of up to $1-million in additional seed capital through the
issuance of CoyoteNet shares. Despite the waiving of deadlines, both
companies remain committed to completing this transaction as soon as
possible.
As of the end of August, CoyoteNet had 49 Internet terminals installed, up
26 per cent from the end of July. An additional 16 Internet terminals have
already been ordered by clients for installation in September/October. July
revenues are estimated to be approximately $34,000 based on 39 terminals
and August revenues are anticipated to be approximately $45,000.
In order to strengthen its management committee, CoyoteNet has recently
appointed Donald Farnell to the board of directors of the private company.
Mr. Farnell has over 30 years of investment banking experience and is
currently the principal of a company that provides business consulting
services to high-tech start-up companies, turnarounds and public companies.
He has been the president of two public companies listed on the Vancouver
Stock Exchange, the Alberta Stock Exchange and Nasdaq. He is presently a
director of two VSE-listed companies. Mr. Farnell's experience and guidance
will be a welcome addition to the board of directors of CoyoteNet. |
