Valu-net announces private placement
15:16 EST Thursday, January 20, 2000
CANADIAN VENTURE EXCHANGE SYMBOL: VNE
TORONTO, Jan. 20 /CNW/ - Valu-net Corporation ("Valu-net") (CDNX: VNE) -
Valu-net Corporation is pleased to announce a proposed private placement of 2.5
Million units at a price of $1.20 CDN per unit, to raise gross proceeds of
$3,000,000 each unit being comprised of one common share and one common share
purchase warrant. Each common share purchase warrant will entitle the holder to
acquire one common share of the Company at an exercise price of $1.85 for eighteen
months following the date of closing of the proposed private placement. Proceeds will
be used to repay certain indebtedness, marketing and product development and for
other general working capital purposes. The private placement is subject to receipt of
all necessary regulatory approvals and certain other conditions.
The Company has entered into an agreement with Canaccord Capital Corporation
"Canaccord", under which Canaccord would act, at arm's length, on a "best efforts
basis" in connection with the aforementioned private offering.
25% of the funds raised in the offering will be made available to the company upon
closing of the transaction and the remaining net proceeds will be placed in escrow
pending shareholder and regulatory approval and completion of the Applied
Innovations Group Inc. transaction by no later than April 15, 2000. In the event such
condition is not satisfied investors will be entitled to be refunded such monies placed
in escrow.
On November 4, 1999, Valu-net Corporation and Applied Innovations Group Inc.
announced the signing of agreements expanding the business relationship between the
two firms to include reciprocal equity investments, as well as exclusive, revenue based
e-commerce services to AI Group companies, including Bid Freight Global. The
transaction between Valu-net and Applied Innovations is subject to the approval of
Valu-net shareholders and receipt of all necessary regulatory approvals and certain
conditions.
About Valu-net Corporation
Founded in 1995, Valu-net develops online marketing and electronic commerce
programs for selling products over the Internet. This expertise is used to directly
create Internet business initiatives through Valu-net's own divisions, joint ventures,
and industry partnerships. In addition, Valu-net is able to offer merchants a complete
range of business enabling services to meet the growing demand for secure and
effective electronic commerce. These services are available to merchants directly
through Valu-net or indirectly through agreements with agencies and resellers.
Valu-net's division, The eMerge Alliance (www.emergealliance.org) offers merchants
easy entry into the electronic commerce market with a turnkey solution that is both
scalable and cost-effective. Further information is available through Valu-net's
corporate web site at www.vncorp.com.
About Applied Innovations Group Inc.
AI Group is a private company with global business operations through offices in
Canada, the United States, and Europe. The company earned in excess of $230
million in revenues in 1999 and is engaged in the supply and reallocation of large
volumes of computer and related hardware. AI's management brings with it fifteen
years of unparalleled computer product sourcing excellence and experience that has
positioned AI Group among the top five distributors in its market sector. AI Group
also includes two leading edge e-commerce companies, Open Portal and Bid Freight.
Open Portal's proprietary database and content management solution benefits the
entire value chain of selected industries where the ability to publish and maintain
complete online lists of products, as well as automated catalog maintenance is
essential. Bid Freight is a transportation exchange and is in the business of transacting
land, sea and airfreight shipments using the Internet. Bid Freight's proprietary
software provides a total logistics management solution that supplies automated
methods for shipment placement, bidding, negotiation, scheduling, delivery notification
and payment settlement through a centralized, real time information network. Applied
Innovations can be reached online at www.aiicorp.com
Valu-net trades on the Canadian Venture Exchange under the symbol VNE and has
approximately 40 million shares outstanding.
The Canadian Venture Exchange has neither approved nor disapproved the
information herein contained. |
