RES International Inc. Secures Major Investment
OTTAWA, ONTARIO--RES International Inc. (the "Corporation") has
entered into an agreement with Alpha Cell Technologies Inc.
("Alpha Cell") to purchase all rights in certain long term US
treasury bills and strip bonds with a market value as at December
30, 1997 of US $20 M (converted at the exchange rate of 1: 1.4375
CDN to US dollars into CDN$28,750,000) held by Alpha Cell, in
exchange for common shares of the Corporation. The shares to be
issued to Alpha Cell will be valued at CDN$0.50 per share
resulting in the issuance of 57,500,000 common shares of the
Corporation. The shares will be immediately dividended to
shareholders of Alpha Cell, none of whom will hold more than ten
percent of the capital of the Corporation. Approximately CDN$2 M
of the proceeds of the investment, if and when sold, will be used
to continue current business operations and to settle outstanding
trade obligations, approximately CDN$15 M for business expansion
and the Corporation's R and D program, and approximately CDN$12 M
to undertake new ventures.
A planned investment of US $5 M previously announced in September
and relating to a product merger with ICTV has been dropped due to
delays in funding.
The Corporation has been advised that the present holders of a
convertible debenture have assigned their rights to a third party.
Furthermore, the Corporation proposes to eliminate approximately
$433,000 of debt by way of issuing of common shares. The shares
to be issued will be issued at a conversion rate of $0.05 per
share, resulting in the issuance of 8,666,000 common shares of the
Corporation.
The Corporation also proposes to carry forward with a $300,000
private placement to provide working capital. This will result
in the issuance of 6,000,000 common shares of the Corporation.
All of these transactions, and specifically the share issuances,
are subject to shareholder approval to be obtained at a
shareholders' meeting to be held in Ottawa, Ontario in the last
week of March, the completion of due diligence and legal
formalities, and regulatory approval.
The Corporation is quoted on the Canadian Dealing Network (CDN,
symbol RESZ), and is quoted on the US OTC Bulletin Board (symbol
RSIIF). The current number of common shares of the Corporation is
approximately 29,500,000.
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FOR FURTHER INFORMATION PLEASE CONTACT:
RES International Inc.
Rolf E. Schliewen, President and CEO
600, 100 Sparks St., Ottawa, ON K1P 5B7
(613) 238-3690
(613) 235-5889 (FAX)
e-mail: res@res.ca
NET: res.ca |
