News release (will this be RIS.com ???)
RIS to undertake corporate restructuring
RIS Resources International Corp RIS
Shares issued 34,663,741 May 14 close $0.85
Mon 17 May 99 News Release
Mr. John Hislop reports
The board of directors of RIS Resources International Corp. proposes to undertake a corporate restructuring by adopting a plan of arrangement under the B.C. Company Act. The board proposes to create a separate company (NewCo) and to transfer from RIS to NewCo all of the 11,726,246 common shares it currently holds in Ultra Petroleum Corp. (UP - TSE). RIS will continue to hold all the other assets currently in the company.
The board of directors believes that such a restructuring may increase shareholder value by enabling each company to focus on its own business plan. Through its holdings of Ultra Petroleum Corp. common stock, NewCo will be able to invest in other opportunities in the traditional oil and gas sector. New RIS, as the remaining entity, will continue to seek investment opportunities in a diversity of industries ranging from the resource sector, which could include additional coal bed methane interests, to the technology sector, which could include Internet related projects in addition to the investment referred to below.
The restructuring is subject to shareholder approval, and also to the acceptance of the transaction by the Vancouver Stock Exchange, and the issuance of applicable orders by the Supreme Court of British Columbia.
On completion of the plan of arrangement, for each share of RIS held, the shareholders will receive a share of new RIS and .25 of a share of NewCo.
New RIS will hold the remaining assets which currently include $5-million (U.S.) in cash, 2.5-million common shares of Pennaco Energy, Inc. (PN - AMEX), a 50-per-cent interest in the Bird Canyon Pipeline in Wyoming and an interest in a coal bed methane prospect in Germany. NewCo will hold the 11,726,246 common shares in Ultra Petroleum Corp. with adequate working capital and additional investment capital to be raised by way of a proposed financing.
In pursuit of its philosophy of diversification, the management of RIS has been reviewing investment opportunities in the technology field. RIS has recently invested $150,000 (U.S.) to acquire 150,000 common shares of UBRANDIT.COM (UBRT - OTC BB) which is focused on becoming a provider of Internet private labelled or branded financial and e-commerce Web-based systems. Its wholly owned subsidiary, Global Investors Guide, is a World Wide Web development company that among other things provides financial information services via a Web site at gigweb.com.
The management of RIS will continue to search for innovative investment opportunities in the technology sector, which will add to the equity value for its shareholders. The development of broadband access to the Internet is an area of particular interest. The new technologies, network infrastructures and content plays, which will arise form this new medium are bound to provide great investment opportunities to its early investors.
RIS is currently focused on exploring investment alternatives in this area.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
