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GLOBAL NET ENTERTAINMENT CORP ("GET-V;GBLJF-L") - Management Discussion
Management of the Company has been exclusively focused during the last quarter, and to the date of this Report, on the problems of reorganizing the business affairs of the Company and seeking additional financing and the resolution of the Company's large accounts payable. A detailed description of the Company's situation was included in the Management Discussion Schedule C to the Company's March 31, 2000 Quarterly Report - dated September 25, 2000.
Management had obtained agreements in principle to do a private placement of Special Warrants at $0.25 per share - but as the market weakened well below that the placees declined to formalize the placement agreements. Management has been seeking additional private placement funding agreements but has not yet been successful.
A major effort is being made to establish the bona fide debts of the Company with a view to offering the creditors a shares-for-debt arrangement. It is believed that if significant debts of the Company can be eliminated through the issuance of settlement shares the Company's enhanced financial position will make it more attractive to future investors. However, at the date of this Report, the Company has a serious cash deficiency and has been unable to pay its ongoing costs on a timely basis.
The Company has had to abandon virtually all of its proposed business ventures as announced in previous Releases - with the exception of the 50 Video Lottery Terminals in Honduras. Due to apparent abusive treatment of the machines by the users, all of them became unservicable and they ceased to provide any cash flow. The Company has arranged with the company handling the VLT's for the Company to have repair parts shipped and have the machines repaired so that they can be reinstalled in a more favourable location in Honduras. The success of that effort is not yet assured.
Plans for the Company earlier announced to have its shares listed or quoted on other securities markets have been abandoned - and the Company's shares accordingly trade only on the Canadian Venture Exchange.
At the Annual Meeting held in Vancouver on September 29, 2000 the Board of Directors was re-elected. On August 22, 2000 Carl Jonsson, an experienced Vancouver corporate securities lawyer, was appointed to the Board. Former Directors Julius Csurgo and Peter Zmudzki, contrary to previous expectations, have not continued to be involved in or provide assistance to the Company or its new management.
Effective October 5, 2000 the Company signed a Shareholder Relations and Promotion Agreement with Quayside Communications Inc. of Vancouver, B.C. However, no active promotional efforts have bee made pending the reorganization and consolidation of the Company's management and affairs. In the interim the Company's efforts have been essentially combined to the issuance of occasional press releases and the issuance and filing of Quarterly Reports. TEL: (604) 309-4737
Global Net Entertainment Corp. |
