VNE PRESS RELEASE - $14 MILLION FINANCING
Good morning to you all. Please find enclosed the latest press release from Valu-net, as well as, direct comments from VNE President - David Lucatch.
Though such a press release is self-explanatory, we are especially pleased with the magnitude of the financing, as well as, the fact it is being raised in the United States. The magnitude of the financing indicates this is not your everyday financing "to supply working capital" and the source indicates VNE has the confidence of US financiers.
Further indication comes directly from the press release, in which the company states:
"Valu-net has been negotiating a number of exciting joint ventures and
product initiatives with several major international corporations, who have come to recognize Valu-net's Electronic Commerce and Internet Marketing platform as being one of the best in the business. Further announcements on the completion of these negotiations will be made over the next 60 days. Given the current world market interest in Internet stocks, the company considers it prudent to raise the additional capital required for these projects, at this time".
We look forward to the next 60 days.
Regards,
AGORA
If you have not received this press release by direct e-mail, please visit our web site and contact us with "VNE Database" in the subject line.
agoracorp.com
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COMMENTS FROM THE PRESIDENT
Please find enclosed a copy of Valu-net's latest press release.
Valu-net has spent the past 4 years developing proprietary technology and
marketing solutions for the Internet. We have had a great opportunity in
Canada to incubate our solutions and focus on producing products that are
market savy, profitable and deliver working results.
Our recent efforts worldwide have introduced us to a number of key
opportunities for the future. These opportunities include Canada, the US,
Europe, Africa, Australia and the Pacific Asia region.
Valu-net is focussed on delivering long term value to our consumers,
business clients and our shareholders. To enable Valu-net to compete on a
global basis, we have begun the process of working with the US investment
community and our results have been outstanding.
In a very short period, we have been able to negotiate a number of
significant US investment opportunities and long term plans. The results
are below.
As always, I welcome your comments and should you wish to speak with me
personally, please do not hesitate to contact me.
Sincerely,
David Lucatch,
President & CEO - Valu-net Corporation
d.lucatch@vncorp.com
David
ASE Symbol - VNE CUSIP No. 919911 10 7
VALU-NET TO RAISE CDN. $14 MILLION VIA PRIVATE PLACEMENT
WITH U.S. INVESTMENT GROUP
Markham, Ontario, January 21, 1999. David Lucatch, President and CEO of
Valu-net Corporation ("Valu-net"), today announced the signing of an
agreement to issue 6.67 million units in equity financing, via a private
placement. Eachunit is comprised of one (1) common share at Cdn. $0.90 and
one (1) full warrant to purchase one (1) common share at Cdn. $1.25. The
first phase of the private placement, totalling up to Cdn. $6 million, is
expected to close on or before February 28, 1999, while the warrants are
expected to be exercised anytime within the next two years. If all the
warrants are exercised, a further Cdn. $8 million will be raised, for a
total of Cdn. $14 million, in new equity financing. This financing is
subject to regulatory approval in both the U.S. and Canada. The price per
common share was fixed pursuant to the maximum discount allowable by the
Alberta Stock Exchange as at January 11, 1999.
A private, New York based investment partnership will lead this issue, on a
best efforts basis, with the assistance of a major securities underwriter
and brokerage house in New York.
Proceeds from this financing will be used for working capital purposes and
expansion of the company's global marketing strategy, including the
establishment of a prominent presence in the U.S. Internet market and entry
into the European and Asian Internet markets.
Mr. David Lucatch, President and CEO of Valu-net Corporation, stated;
"Valu-net has been negotiating a number of exciting joint ventures and
product initiatives with several major international corporations, who have
come to recognize Valu-net's Electronic Commerce and Internet Marketing
platform as being one of the best in the business. Further announcements on
the completion of these negotiations will be made over the next 60 days.
Given the current world market interest in Internet stocks, the company
considers it prudent to raise the additional capital required for these
projects, at this time".
Valu-net Corporation, a publicly traded corporation on the Alberta Stock
Exchange, (symbol "VNE") is a leading marketing and technology company
providing a complete range of services designed to meet the growing demand
for Internet marketing and electronic commerce. Valu-net's Enhanced Service
Program provides businesses with integrated Internet marketing programs,
Electronic Commerce and transactions technologies in order to advance their
business and marketing goals. At the same time, ESP's Web-This-Week - the
largest gateway to the Internet in Canada - enables consumers to interact
with such businesses. For more information, please visit our web site at
"www.webthis week.com".
For further information, contact:
David Lucatch, President & CEO, Gary Perkins
Valu-net Corporation Investor Relations information contact:
Phone (905) 474 - 5100 Tel: (905) 889 -1711
Toll Free 1-800-558-9069 Toll Free1-800-225-2744
Fax: (905) 474 - 9843 Fax: (905) 889 - 2511
E-Mail - dlucatch@valuenetwork.com E-Mail -
investrelations@vncorp.com |
