LETTER TO SHAREHOLDERS, NOVEMBER 22, 1999
Dear Shareholder:
Re: Exercise of Warrants from Rights Offering
It was a pleasure to meet many shareholders at the recent
information update sessions in Saint John and Toronto.
We promised straight answers and we delivered straight answers! We certainly appreciate the encouragement and support shown to us.
As outlined, the focus of the NEW IBI must be to bring the
world-class Bukusu vermiculite and phosphate mines into production. Keypriorities, therefore, will be to:
. raise financing;
. put Bukusu agreements into good standing;
. reestablish corporate and regulatory status of the
Company.
We have completed the first two platforms in our financing
program:
. seed capital for restructuring $75,000
. sale of Memex investment (see press release
of November 22, 1999)
200,000
The next step is to obtain commitments from shareholders to
exercise warrants at $0.06 from the Rights Offering, for a total minimum
of $500,000.
Please forward :
. your Exercise Form from the Warrant document if you had
participated in the
rights offering, or
. a note with your name, address, and social insurance number if you now wish to
participate in the Warrant offering at $0.06,
and in either case with your cheque for the full amount dated November 30, 1999 and payable to IBI Corporation.
We intend to hold these cheques pending renegotiation of the
Bukusu agreement . With these commitments in hand, we will be in a positive negotiating position. If we fail to put the Bukusu agreement into good standing, we will return the cheques to you.
Please forward your cheque and these documents to :
IBI Corporation
110 Ambleside Drive
Port Perry, Ontario, L9L 1B4
by Priority Post or deliver them to your broker to be sent to us in bulk.
As outlined at the meetings, the support and initial funding from the shareholders will be a powerful signal of the strength and direction of the NEW IBI. This should enhance our ability to bring in a strategic investor for the final funding platform.
Although the textbook says that one should exercise a warrant when it is "in the money" (trading at a price higher than the exercise price). In this case the stock won't get "in the money" without the cash investment now.
Hopefully, the credibility established at the meetings will
provide the confidence that it is reasonable to exercise the warrants now and allow us to continue to work to enhance shareholder value. |
