Valu-Net Corp VNE
Fri 26 Feb 99
News Release
Mr. David Lucatch reports
The company has extended the closing date and reduced the amount of equity financing, first announced on Jan. 21, 1999. The new amount will be 2.2 million units, with each unit comprising one share at 90 cents and one warrant to purchase one share at $1.25. If all the warrants are exercised, a total of $4.7-million will be raised from this issue. The price per share was fixed pursuant to the maximum discount allowable by the Alberta Stock Exchange as at Jan. 11, 1999.
As previously reported a private, New York based investment partnership will lead this issue, with the assistance of a major securities underwriter and brokerage house in New York.
The extension of the closing date from Feb. 28, 1999 to March 10, 1999 was due to the fact that, in order for the shares issued pursuant to this private placement, to become free trading 120 days after closing, the company was required to file an annual information form with the ASE and this could only be done after the filing of the annual financial statements, which occurred on
Feb. 20, 1999.
Furthermore, given the favourable response to the eMerge alliance as well as other positive business developments, the board of directors considered it prudent to raise less money at this time, thereby minimizing overall shareholder dilution. 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.
Dir's: Arandjelovic Zoran, Coyne Jeffrey, Lucatch David M, Novak Brian, Pearlman Anthony, Pinsky Irwin
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