WIZZF News Out
Attention Business Editors:
WSi Interactive Corporation signs $10 million USD Inventory Agreement to launch Internet Business
Symbols: CDNX - WIZ OTC -WIZZF
VANCOUVER, April 11 /CNW/ - WSi Interactive Corporation (CDNX:WIZ;
OTCBB:WIZZF) is pleased to announce it has signed a $10 million USD inventory
agreement to launch an Internet business through a strategic alliance with RG
Diamonds Inc., of Chicago, Illinois. The parties are jointly launching a full
e-commerce Internet based business, with the e-commerce sites having the
domain names ``diamondforum.com' and ``diamondreplacement.com'. These
e-commerce businesses are currently in the process of development.
Diamondreplacement.com is designed to capture a sizeable portion of the
huge ``business-to-business' market in the insurance replacement of jewellery
loss due to theft. Reported jewellery theft in the USA is over $1 billion
annually. The business specifically offers insurance companies the following:
1. the opportunity to purchase replacement diamonds at wholesale
prices with inventory supplied by RG, thereby gaining enormous
cost savings and thereby providing RG with a huge market; and
2. dramatically enhanced capabilities for fraud detection, also
resulting in huge cost savings.
At present the capabilities for jewelry fraud detection remain relatively
localized, unorganized and subject to problematical appraisals. The business
of diamondreplacement.com is aimed at using advanced technologies, especially
Internet technologies, for dramatically improving, both locally and on a North
American (USA and Canada) scale, registration of certified diamonds with their
appraisal details.
With this information in a state of the art database, capable of being
queried by claims representatives, fraud detection is enabled across North
America to a level of operations not previously possible. It is of course also
possible for the insurance claims representatives to purchase replacement
diamonds of appropriate quality.
The object of Diamondforum.com shall be to leverage its inventory in the
USA and internationally to seize a significant share of the lucrative diamond
and fine jewellery markets. According to a February 14, 2000 article on C/net,
the diamond jewellery market alone in the US is estimated at about $30
billion. This is significantly larger than the entire music or book markets.
In February of this year, The New York Times quoted an industry insider
as saying the diamond market in general is up 12%. In fact, DeBeers sales of
rough diamonds, a key indicator, rose 57% last year to a record $5.24 billion
from 1998 sales of $3.35 billion. Globally, in 1998 worldwide jewellery sales
were approximately $100 billion.
RG Diamonds Inc., of Chicago, has been part of the diamond industry for
over 16 years, in both the wholesale and retail sectors. Headquartered in
Chicago, where it operates its jewellery manufacturing facility with advanced
laser technology, the Company has offices in Vancouver, B.C., Tel Aviv, Israel
and Belgium. RG Diamonds Inc., augments its global presence by manufacturing
platinum jewellery through an affiliated manufacturing facility in Tokyo,
Japan. Within the USA, the Company also owns and operates its own retail
outlets.
WSi Interactive Corporation and RG Diamonds Inc., have agreed to create
in equal partnership a Nevada Corporation to own and operate the Internet
e-commerce business. This business will own the two Internet based e-commerce
sites. In consideration of this agreement, the Internet e-commerce business
will be supplied with approximately USD $10 million inventory of diamonds and
jewellery plus all the expertise and services of RG Diamonds Inc., in
connection with the diamond industry.
WSi Interactive Corporation's divisions will design, develop and
implement the e-commerce sites as well as provide all marketing and management
services.
In consideration of RG Diamonds Inc. entering into this arrangement, WSi
has agreed, subject to regulatory approval, to grant Reuven Gitter, the
principal of RG Diamonds Inc., an option to purchase up to 50,000 shares of
WSi for $2.50 each, exerciseable as to 25,000 shares after six months and as
to 25,000 shares after one year and on or before 18 months. |
