INTERNET (esecurities.W) April 12, 1999 - NewKidCo LLC to be NKC(IF)s largest shareholder?
"...Joint Venture Transaction Details Under the transaction, NewKidCo Holdings LLC has transferred its assets and business to the joint venture. In exchange for a $500,000 (U.S.) cash payment, SoftQuad International's subsidiary, Alpha Software Corporation, now owns a 75% interest in the joint venture and beginning in June 1999 will have an option to acquire, or under certain circumstances be required by NewKidCo Holdings LLC to acquire, NewKidCo Holdings LLC's 25% interest in the joint venture for 975,000 shares of SoftQuad International stock and cash payments based upon the joint venture's profits for the first three years from its formation. If prior to Alpha's acquisition of NewKidCo Holdings LLC interest, the joint venture has achieved specified revenue and profit goals, NewKidCo Holdings LLC will also receive warrants to acquire up to 4,000,000 shares of SoftQuad International stock at prices ranging from $1.50 (U.S.) to $4.00 (U.S.) and may elect to receive, in lieu of the 975,000 shares of SoftQuad International stock, a cash payment of $1,462,500 (U.S.)..."
SOURCE: © 06/09/98 Company Press Release
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