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Net Shepherd announces raising of US$15,000,000 in Equity Capital
21:27 GMT-05:00 Thursday, March 08, 2001
NLK / Bill Fogg, President and CEO of NSI announces today the raising of equity capital in the amount of US$15,000,000. Vanenburg Group B.V. has committed to investing US$7,500,000 in this round. Vanenburg has already invested US$3,250,000 of that and will be placing the balance with NSI in the coming weeks. Bill Fogg, CEO " I am pleased to announce the continued support of NSI on the part Vanenburg and their genuine belief in the new NSI vision. I will be working closely with the members of the Vanenburg Group to deliver a plan to the financial communities in the coming days. This plan will outline the CEO vision and the roadmap to bringing NSI back as an operating company. My immediate strategy is to divest NSI of those asset holdings, which are not focused on the following areas, eCRM, ERP, Supply Chain Management or Wireless applications. Management will take a pronged approach, either liquidate, sell in whole, as is or consolidate operations of multiple businesses and sell our interests in them."
Wim Heijting, Chief Operating Officer, Vanenburg Group, " Vanenburg has closely reviewed the new NSI vision presented by Bill and believe that with his continued determination to focus on select markets and even further focusing on supply and demand applications NSI has the greatest potential for success. This will allow NSI to sell its products and services to companies with extreme logistical planning requirements and demanding customers. The members of the Vanenburg Group believe this business approach will be well received by both the financial and commercial markets."
NSI will raise this money at a share price of Thirty Cents (C$.30) with a half warrant attached at a rate of Seventy-Five Cents (C$.75). The remaining US$7,500,000 will be raised through a "Rights Offering" to existing and new investors; the round will be closed within the next 30 days.
The money already invested by Vanenburg, US$3,250,000 has been invested, on behalf of NSI into Answers, Inc. (Answers), increasing its holding in Answers to roughly 75% up from approximately 65%. Answers is continuing to search for third party investors as well, meeting with Venture Capital and corporate financial groups regularly. Answers has an OPEX of approximately US$650,000 with growing revenues, currently at US$120,000 per month. New users of the Answers products are Bloomberg, LA Times, USA Today and GE European divisions including localized languages in French, German, Italian, Portuguese and Spanish.
Bill Fogg, CEO " I realize that the NSI investors are anxious about current share price and their desire to see it rise, this will only happen if we are now bold, focus on building the business and continue to rally support for the new plan. I will have to make difficult decisions on a daily basis regarding those NSI holdings, which are outside of our focus. It is imperative that those commercial opportunities, which have hope, to continue on but can no longer be a distraction for this management team.
Bill Fogg, President / CEO
Net Shepherd
1324-17 Avenue SW, Suite 200
Calgary, AB, Canada
T2T 5s8
403-802-2000
Net Shepherd, Inc.
15 Piedmont Center, Plaza Level
Atlanta, GA, USA
30305
404-995-1700
Net Shepherd, Inc
76 Pearl Street
Essex Jct., VT, USA
05452
802-878-4139
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