OK, here's the scoop on today's filing. Now, I want to make a statement that says I did the due diligence using Microsoft Word's Document Comparing tool. There may be items that I missed or the tool missed, there may be items which you would find more substantial than I have or you may find that my DD sucks. That's up to you, I take no responsibility for any actions you take as a result of my statements. Everyone should do their own Due Diligence!
Now that that is over with, there is NO substantial change in the documents. I have extracted the changes and cover them below. Here they are, I am willing to discuss them if someone wishes to. Enjoy!
CHANGES TO 20-F FILING
A small change in the exchange rate used. Has no substantial impact on any numbers although it does change the conversion of $C to $US throughout the document. IMO, not worth even mentioning.
Text as follows which identifies the amount of business they did in Canada last year. IMO, probably trying to justify listing in US:
The Company has generated most of its revenues to date from online auction sales in the United States and limited revenues from online auction sales in Canada. During 1998, revenues from online auction sales in Canada were approximately Cdn$270,000.
A discussion on AOL changes. This one could look more serious except all comments are qualified and probably needed to be stated in order for SEC to feel happy about the "substantial" change in AOL agreement. Although Doug and GoNorth will undoubtably have fun with this one!
Management estimates that in 1997 and 1998 the Company earned a substantial portion of its auction revenues from customers who accessed the Company's auction site through AOL. While the Company has broadened its marketing channels, it expects that a substantial number of bidders will continue to access the Company's Web site through AOL. There can be no assurance that the Rogers Media, the AOL or other marketing and advertising arrangements will not be terminated prior to their expiration, or that upon expiration will be renewed on favorable terms or at all. The discontinuance of these arrangements, and in particuler, the AOL agreement, would have a material adverse effect on the Company's results of operations and financial condition if the Company were unable to procure suitable substitute marketing arrangements.
A change in the number of warrants remaining. Yorkton exercised quite a few in the last few weeks. Can you blame them!
In addition, as of April 1, 1999, there were outstanding options and warrants to purchase an aggregate of 2,026,796 Common Shares. (used to be 3,795,659)
As well, a small change in the number of options which have been exercised by management. This means they have purchased the shares at agreed upon prices, NOT that they have sold the shares. n fact, it does say that in fact they continue to hold such shares purchased through the options.
A note that ALL warrants provided through financing in August of 1998 have been exercised. I won't post the text, it's long and confusing when trying to compare to what was there before. IMO, this was a nobrainer anyway, the warrants were for something like $1.50, really a nobrainer considering present share price!
A discussion on the opening of the office in Ireland basically dealing with the issue of Euro dollars and conversion issues. The substance of the text is:
The Company does not have in place any hedging programs to manage the potential exposure to fluctuations in the euro/Canadian dollar exchange rate. As European operations expand, the Company may need to evaluate its currency exchange costs and rate exposure with respect to the euro during and after the transition period.
THAT'S IT!!!!
Did anyone read this far? If so, let me know! |
