****NEWS RELEASE****
Starteck building a Web site; $600,000 financing
Starteck Industries Ltd SIV
Shares issued 8,691,428 May 12 close $0.07
Thu 13 May 99 News Release
Mr. Jeff Eng reports
Further to the Starteck new release in Stockwatch May 6, 1999, announcing
that it had contracted an Internet and marketing company to develop a
comprehensive Web site on the Internet, of manufactured housing information
and materials, the Internet and marketing company has begun development of
a state-of-the-art Web site for Starteck. This Web site will take advantage
of a number of Internet technologies with a view to providing Starteck's
customers with a catalogue of manufactured, prefabricated modular, and
panel housing information in a fast and reliable manner.
This Web site will provide information to visitors focused on manufactured,
prefabricated, modular, and panel housing. In order for visitors to gain
access to the database of information, they will first have to fill in a
simple questionnaire answering a few questions. After that is completed,
they will be given a user name and password in order to enter the database.
The database will be edited via a Web-based system, which will allow
Starteck to make changes to the database immediately and for the changes to
appear on the Web as they are made.
The database will include floor plans for homes of all types and sizes, as
well as a complete catalogue of accessories for the homes such as lighting
fixtures, doors, railings, vinyl siding, etc. Future plans for this Web
site include developing virtual tours of customizable homes, and to make
the Web site more personalized for its users. Starteck Industries is also
hoping to generate revenue via its Web site by placing advertisements for
companies such as door, window, and siding manufacturers. This Web site is
projected to be completed in early July of 1999.
Jones Gable & Company Limited has agreed, subject to market conditions, to
act as agent, on a best efforts basis, in an attempt to raise up to
$600,000 for the company through a brokered private placement of up to four
million units at a price of 15 cents per unit. Each unit will consist of
one common share and one non-transferable warrant to purchase an additional
common share for a period of two years at a price of 15 cents per share if
exercised in the first year and 17.5 cents per share if exercised in the
second year.
If the private placement is successful, the proceeds from the private
placement will be used to finance the following:
$150,000 for Internet services and printed advertising;
$125,000 to reduce secondary financing costs;
$225,000 for manufacturing plant startup and inventory;
$100,000 for general working capital purposes and costs of the issue.
Jones Gable will be paid a commission of 7.5 per cent of the gross proceeds
in either cash or shares, in consideration of its efforts in arranging the
private placement.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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