As of September 30, 2001 we had a working capital surplus of $79,593. This amount should increase as we completed a significant amount of reclamation work on the mineral properties and expect the return of the majority of the restricted term deposit of Cdn$20,000. Although we anticipate a minimal amount of work on our exploration properties during the next twelve months, exploration and reclamation are capital intensive. The cost to complete our objectives relating to the Web sites and our ongoing operation costs are also extensive. For these reasons, we believe we have sufficient working capital for the next few months. As a result, we will need external financing implement our plan of operations. On November 16, 2000, we entered into an investment agreement with Swartz Private Equity, LLC. The investment agreement entitles us to issue and sell our common stock from time to time for up to an aggregate of $25 million. This financing allows us to issue common stock and warrants at our discretion as often as monthly as funds are needed in amounts based upon certain market conditions, and subject to an effective registration statement. The pricing of each common stock sale is based upon current market prices at the time of each drawdown, and we may set a floor price for the shares at our discretion.
Timebeat.com Enterprises Inc. - $25 million financing is accepted by SEC
7 Feb 2002, 11:58am ET
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/FROM CANADA NEWSWIRE VANCOUVER 604-669-7764/ [STK] TMBT [IN] OTC [SU] OTC TO BUSINESS EDITOR:
Timebeat.com Enterprises Inc. - $25 million financing is accepted
by SEC
PAYSON, AZ, Feb. 7 /PRNewswire-FirstCall/ - Timebeat.com Enterprises Inc. (OTC BB:TMBT) is pleased to announce that the Company's previously filed SB-2 has been declared effective by the Securities Exchange Commission (the "SEC").
The effectiveness of the SB-2 triggers Timebeat's right, under an investment agreement, to require an institutional investor to provide Timebeat with up to $25 million as an equity based line of credit over a three year period, subject to limitations based upon the trading volume of the Company's common stock. Timebeat expects to utilize the funds to accelerate portions of its business plan such as the Classified and Dance fragrance lines as well as pursue complimentary business opportunities.
For more information contact Barry Girling at:
Tel: (604) 689-4771 Fax: (604) 684-0642; 1-800-545-5787
SOURCE Timebeat.com Enterprises Inc.
USE OF PROCEEDS
We will not receive any of the proceeds from the sale by the selling stockholders of the shares offered under this prospectus. We will, however, receive the sale price of any common stock we sell to Swartz Private Equity, LLC under our investment agreement with Swartz. We expect to sell to Swartz, subject to an effective registration statement and applicable volume and other limitations, up to $25,000,000 of our common stock. Additional amounts may be received if the warrants to purchase common stock are exercised. We intend to use the net proceeds received from Swartz in the following order of priority:
DESCRIPTION: AMOUNT:Expenses of Swartz Investment Agreement: Legal, Accounting, Issuance and Distribution.................$ 100,000Inventory: Jewelry and Accessories:..................................... 4,000,000Marketing:...................................................... 1,500,000Wages, Salaries and Additional Employees:....................... 400,000Reclamation Activities:......................................... 50,000 ------------- SUB-TOTAL:...................................................$ 6,050,000Other Working Capital:.......................................... 18,950,000 ------------- TOTAL........................................................$ 25,000,000 =============
There can be no assurance that we will be able to put the entire $25,000,000 to Swartz, in which event our actual proceeds will decrease.
The amount and timing of our actual expenditures for each of these purposes will vary significantly depending upon a number of factors, including Web site development efforts, competition, marketing and sales activity, and market acceptance of our Web sites. While we have prepared internal forecasts, we believe that these forecasts, as they apply to periods extending beyond the next few months, are inherently unreliable and that our actual cash requirements will differ materially from those we presently forecast. Our directors have discretion in the allocation and use of the net proceeds. Pending such uses, we intend to invest the proceeds in short term, investment-grade, and interest bearing securities. |
