Points And USA Interactive Close $15.1 Million Strategic Investment
16:28 EDT Friday, April 11, 2003
TORONTO, ONTARIO--
USA acquires 19.9% stake in Points, operator of the leading loyalty currency exchange located at www.points.com;
USA able to acquire majority of Points within three years
Points International Ltd (TSXV: PTS), operator of the leading loyalty currency exchange located at www.points.com, today announced the close of a previously announced transaction with USA Interactive (NASDAQ: USAI).
USA has made a Cdn$15.1 million investment in Points, including $12.4 million for a preferred share currently convertible into 18,432,437 million common shares of Points, representing 19.9% of the common shares (on an adjusted fully diluted basis). The $15.1 million investment also includes $2.7 million for warrants that will allow USA to purchase enough shares to increase its stake in Points to 55% (on an adjusted fully diluted basis) at any time over the next three years. As of today's date and based on Points' current capitalization, the warrants' strike price per common share ranges from $1.04 to $1.30, depending on the time of exercise. Please refer to Points' news release dated March 21, 2003 for further details.
"USA Interactive has been very successful in building a number of dynamic interactive properties, and we look forward to working with USA as a close strategic partner", said Points President Christopher Barnard. "The Points team has made strong progress in delivering our vision for a global marketplace to enable the exchange of loyalty points, one of the world's leading currencies. This strategic investment by USA enhances our vision, and puts us in a great position for growth."
"We expect 2003 to be an exciting year," noted Points CEO Rob MacLean. "We're focused on expanding and diversifying our partner base, and building our pointsxchange foundation. This transaction will significantly enhance our prospects."
Points is also pleased to announce that Anne M. Busquet will join its board of directors, representing USA. As part of the transaction USA will appoint a second director to the Points board as well.
Anne Busquet is President of USA's Travel Services group, with responsibility for Expedia, Inc., Hotels.com, Interval International, TV Travel Group and the forthcoming U.S. cable travel network. Ms. Busquet's background includes 23 years in diverse executive positions at American Express.
Shareholders representing over 64% of shares outstanding consented to the transaction as part of the regulatory approval process.
Additional information with respect to the transaction can be found in the material change report of Points International Ltd. that was filed March 21, 2003 on www.sedar.com, copies of which may also be obtained from Points (contact Moira Wright at 416.596.3257).
More about Points International Ltd. and Points Solutions
Points offers innovative solutions to enhance the loyalty experience. Through a portfolio of Points Solutions, Points is forging rewarding partnerships with the world's leading loyalty players to deliver compelling value propositions.
The cornerstone of Points' unique loyalty program asset management system is pointsxchange(TM) - the world's first loyalty program currency exchange that allows consumers to earn rewards faster by making all of their points count.
A growing portfolio of custom solutions also includes the innovative pointspurchase(TM) solution, which powers the online sale of miles and points to members of leading loyalty programs including those of American Airlines, Six Continents Hotels, Lufthansa, Air Canada, America West Airlines, Alaska Airlines, Cathay Pacific Airways and US Airways.
Points Solutions, built on leading edge technology developed and managed in-house, are internationally marketed to travel providers and loyalty programs through a distribution alliance with Sabre, the leading provider of technology, distribution and marketing services for the travel industry.
Points is currently developing a number of custom technology solutions for eBay Inc.
Based in Toronto, Points shares trade on the TSX Venture Exchange under the stock symbol PTS.
FOR FURTHER INFORMATION PLEASE CONTACT: Points International Ltd., Moira Wright, (416) 596-3257, moira.wright@points.com, THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT, RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS |
