Dejour Mines Ltd -
Dejour Mines and InstantDocuments.com cancels business
deal
Dejour Mines Ltd
DEJ
Shares issued 69,183,557
1999-09-24 close $0.31
Monday Sep 27 1999
Mr. Dustin Elford reports
Dejour Mines Limited and InstantDocuments.com Inc. (IDI) have agreed not to
proceed with a business combination at this time. Financiers in the United States
have approached IDI and both companies feel it is in the best interest of all
shareholders to evaluate the possibility of an IDI initial public offering through a
U.S. exchange.
Dejour Mines currently holds shares and notes convertible into a total of
approximately four million shares in IDI or approximately a 40-per-cent interest,
thereby giving Dejour Mines the single largest equity stake in IDI. Under a new
arrangement with IDI, Dejour Mines has agreed to relinquish its exclusive option
to provide IDI with an additional $2,125,000 (U.S.) of financing for a maximum
50-per-cent interest in IDI. Dejour Mines will however have the right to purchase
an additional 233,333 shares of IDI until Oct. 31, 1999, and the right to
participate in future financing under an antidilution provision. Dejour Mines has
decided not to proceed with the private placement of three million common shares
as previously announced in its July 22, 1999, news release, as well as the 3.5 to 1
share consolidation.
Dejour Mines is extremely pleased with the progress of IDI to date. With the
advent of material revenue streams developing in well-established vertical business
to business markets in the insurance and banking sectors, and the implementation
or marketing alliances with brand name companies such as Agfa Gavaert N.V. in
Europe, Snap Printing in Australia, Sir Speedy Printing, Quick International
Courier and Dynamex Couriers in North America, IDI management has now
proven that both the service and underlying technology have significant value and
marketability.
Dejour Mines has been advised by the Toronto Stock Exchange that its significant
investment in IDI and its focus away from the mining business constitutes a change
in the nature of the company's business and that the company is required to meet
the TSE's original listing requirements for non-resource companies. The company
has agreed with the TSE to seek a listing of its shares on an alternative exchange. |
