Christian, you're pretty good at reading these things. Your thoughts? (I don't like the "special warrants" moniker)
fin-info.com
BID.COM International Inc. To Issue Special Warrants
TORONTO, ONTARIO--Paul Godin, President and CEO of BID.COM
International Inc. ('BID.COM'), announced today that BID.COM has
entered into a bought deal agreement with Yorkton Securities Inc.
in connection with the issue and sale of 5.7 million Special
Warrants. The Special Warrants will be issued from treasury and
sold at a price of $1.75 per Special Warrant for aggregate gross
proceeds of approximately $10.0 million. Paul Godin and Jeffrey
Lymburner have granted Yorkton Securities Inc. an option,
exercisable until closing, to acquire up to an additional 400,000
Special Warrants. The transaction is subject to regulatory
approval and is scheduled to close on or about November 30, 1998
(the "Closing Date").
Subject to adjustment in certain events, each Special Warrant will
entitle the holder to acquire, for no additional consideration,
one Unit consisting of one Common Share and one-quarter of one
Common Share Purchase Warrant. Each whole Purchase Warrant will
be exercisable to acquire one Common Share at a price of $1.75 at
any time prior to the date which is the earlier of (i) 10 days
after the filing of a registration statement or preliminary
prospectus for a U.S. public offering and (ii) December 31, 1999.
In the event that BID.COM fails to obtain receipts for a final
prospectus qualifying the distribution of the securities
underlying the Special Warrants from applicable securities
regulators prior to the date that is 90 days following the Closing
Date, each Special Warrant will be exercisable to acquire 1.05
Units (in lieu of one Unit).
BID.COM intends to use the net proceeds from the offering for
advertising and marketing, business-to-business development,
research and development, working capital and prospective
acquisitions.
BID.COM was founded in 1995 and listed on The Toronto Stock
Exchange in February 1998 under the symbol "BII". With offices in
Toronto, Ontario and Tampa, Florida, it is one of the Internet's
leading online auction sales organizations. The company offers a
compelling, entertaining, and cost-effective method of selling a
wide array of consumer goods to business and retail shoppers in
their homes and offices using interactive displays on the Internet
as the distribution channel. In addition to its strategic
alliances with America Online, GTE Media Ventures, and The Toronto
Star Newspapers Limited, the company has also recently announced
new distribution agreements with Yahoo! Metacrawler and Netscape.
The Special Warrants have not been and will not be registered
under the U.S. Securities Act of 1933 and may not be offered or
sold in the United States absent such registration or an exemption
from applicable registration requirements.
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FOR FURTHER INFORMATION PLEASE CONTACT:
BID.COM International Inc.
Paul Godin
President and CEO
(905) 672-7467 ext. 226
Website: www.bid.com
Not for distribution to U.S news wire services or dissemination
into the U.S.
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