The second part of a plan -- News:
biz.yahoo.com
Net Shepherd Inc. Announces Convertible Notes
Calgary, Alberta
Net Shepherd Inc. (``NSI'') (CDNX: WEB) today announced it has approved the issuance by
Answers.com, Inc., one of NSI's US subsidiaries, to Vanenburg Capital Management I BV (a holder of
more than 10% of the issued and outstanding common shares of NSI) of convertible subordinated
notes in the principal amount of up to US $2.5 million.
Up to US $10 million is being raised by Answers.com in issuing the notes, the proceeds of which will
be used for working capital needed by Answers.com and is required as part of the acquisition of
Know It All, Inc. The notes will bear interest at 8%, be subordinated to Answers.com's indebtedness
to lending institutions, and will be convertible, upon completion of raising a minimum of US$5 million
dollars and subject to regulatory approval, to preferred stock of Answers.com on terms to be
determined by Answers.com in conducting a financing of such preferred stock to early stage investors
and new third party investment companies. In the event the Notes are converted, NSI's ownership
interest in Answers.com will be diluted.
The independent members of the board of directors of NSI reviewed the issuance of notes by
Answers.com to Vanenburg and determined that it was in the best interests of NSI to approve the
transaction because NSI does not currently have funds which are not already allocated and market
conditions are not conducive to NSI raising equity on favourable terms.
About NSI: NSI is an Internet-based technology management company that accelerates the
companies in which it has an interest. NSI has five investments at present: Answers.com,
ClickChoice.com, FinTech Services, KinetiQ and ktopia. NSI builds up the assets and valuations of
these investments and then takes them through liquidity events, such as mergers, sales or IPOs.
NSI is traded on the Canadian Venture Exchange under the symbol WEB.
About Answers.com: Answers.com (http://www.answers.com) is a provider of online customer
service tools that help businesses of all sizes manage inquiry volume, minimize costs and maximize
customer satisfaction. Through their advanced question and answer technology, Answers.com
provides the tools for online customer service support. Simply put, it allows any company's Web site
visitors to quickly find real answers to their questions -- 24 hours a day, seven days a week.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
Contact: Bill Fogg (403) 802-2054 bill@answers.com |
