Spartacus Capital Inc -
Spartacus to acquire Mycitymarket.com
Spartacus Capital Inc SCI
Shares issued 2,500,000 2000-01-14 close $0.75
Monday Jan 17 2000
Mr. Mark Brown reports
On Jan. 14, 2000, a letter of intent was signed to acquire 100 per cent of Mycitymarket.com Inc., a B.C. company. Mycitymarket.com is an innovative e-commerce marketing company, building local marketplaces on the Internet. These destinations offer local consumers a variety in e-commerce shopping from their favourite local merchants, as well as community information and local discussion groups. Existing retail merchants are provided with a Web presence, e-commerce capabilities and marketing directly focused on building Web traffic.
Mycitymarket.com currently operates in British Columbia and growth plans are underway for expansion into the rest of Canada, the United States and beyond. Sales have already started to grow and the revenues come from a combination of set-up fees for merchants and commissions on all Web site sales. Mycitymarket.com expects a rapid growth trend similar to Chapters.ca or Amazon.com. In the last three months, Mycitymaket.com has signed up 14 merchants including Audio Video Unlimited, Daniadown Quilts, Urban Barn, Sicklemore's Flowers, Kerrisdale Cameras and Gravity Computers.
Sodi Hundal, the founder and president of Mycitymarket.com, has spent 10 years working with retailers and evaluating their needs. He identified the need for mid-sized retailers to be part of the Web and developed a plan which keeps their costs low by outsourcing the technical and marketing aspects of e-tailing. His vision for Mycitymarket.com is to be the leading Web site for merchants in their particular location so local purchasers can increase their purchasing through the medium of the future. Mr. Hundal will be joining the board of directors.
Gordon Heard, C.A., is the chief financial officer of Mycitymarket.com. After working with KPMG in Ottawa and the Bahamas, Mr. Heard held a position in the corporate finance department of a large multinational public company in Vancouver. The combination of his finance skills with Mr. Hundal's vision for the company gives Mycitymarket.com a clear path forward.
The combined company's board will be made up of the current directors, Mark T. Brown and Eric Cardey, and it will also include Mr. Hundal, Ullrich Schade and Conrad Lacker. Mr. Schade has over 20 years of experience providing integrated design, marketing, advertising communications and public relations services to technology and emerging growth clients. Mr. Lacker was the founder and operator of a successful national retail chain and is currently a director and vice-president of business development of the operating company that owns Kidco.com. James H. Elliott and John J. Brown will be retained on an advisory board on completion of the transaction.
The purchase price is 3.5 million common shares of Spartacus. Spartacus is required to complete an equity offering of $2-million to finance marketing and expansion into additional markets. The transaction is subject to shareholder and regulatory approvals and the shares issued for the acquisition will be subject to certain trading restrictions and performance requirements.
The letter of intent also calls for the signing of a definitive agreement and completion of due diligence by Feb. 15, 2000. A shareholders' meeting will be scheduled for late March. The $50,000 loan made according to the previously signed exclusivity agreement will remain in place.
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