BIG NEWS:
Rogers Media to invest in Bid Com; co-branded
online auction
Bid.Com International Inc
BII
Shares issued 21,023,000
1998-07-29 close $1.68
Thursday Jul 30 1998
Also Rogers Communications Inc (RCI.B)
Mr. Chris Bulger reports
Bid.Com International has entered into two separate agreements with Rogers
Media Inc. The first agreement is an alliance for a co-branded national online
auction in Canada. The second will see Rogers invest in Bid.Com through a
private placement.
The private placement offering is comprised of a special warrant purchased for
$1,875,000 which is convertible into 1,500,000 common shares of Bid.Com for
an effective purchase price of $1.25 per share, plus a warrant to purchase an
additional 100,000 shares at $1.40 per share at the earlier of a U.S. public
offering or 12 months from the closing date. Beyond the investment, Rogers has
committed in excess of $1,000,000 per year in media advertising to promote the
partnership, and has the right to appoint a nominee to the board of directors of
Bid.Com.
Under the terms of the alliance, Rogers will be responsible for generating web site
traffic through its national media properties in print, broadcasting and over the
Internet. Bid.Com will be responsible for merchandising and operating a national
online auction.
Earlier this week, Bid.Com entered into an $11.3-million bought deal equity
financing agreement with Yorkton Securities.
Rogers New Media is committed to providing Canadians with credible
information and resources through online initiatives. It is responsible for the
administration and implementation of all Web content, licencing and development
activities of Rogers Media Inc., the content division of Rogers Communications
Inc. |
