To: HEMI who wrote (11010 ) 10/5/1999 12:18:00 PM From: Fred C. Dobbs Respond to of 150070
sedar.com September 10, 1999 COMPANY ANNOUNCES CHANGE OF BUSINESS Fedora Industries Inc. (VSE-FED) announces that it has reached an agreement for the acquisition of 100% of the issued shares of Sportslink Direct Marketing Ltd. (?Sportslink?). Sportslink is in the business of retailing sporting goods through the internet, via its website located at www.airbomb.com. Sportslink markets products acquired from a variety of suppliers at discount prices. Sportslink also distributes its own ?airbomb? line of products, which are products acquired at a significant discount from established manufacturers and labeled with the company?s ?airbomb? private label. Sportslink had revenues of $519,970 in the fiscal year ended March 31, 1999, its first full year of business, and incurred a loss of less than $1500 during this same period. The Company has agreed to purchase the Sportslink shares for total consideration, based on an independent valuation, as follows: A. cash in the sum of $56,000; B. 2,300,000 fully paid shares of the Company at a deemed price of $0.28 per share; C. 500,000 share purchase warrants of the Company at a deemed price of $0.28 per warrant, exercisable without additional consideration to acquire 500,000 shares of the Company; and D. the issuance of stock options to the vendors and their qualified nominees for the purchase of 400,000 shares of the Company exercisable for five years at $0.28 per share. The shares to be issued pursuant to clauses B and C above will be subject to a one-year hold period based on applicable securities laws. Suite 505 - 1155 Robson Street, Vancouver, B.C., V6E 1B5 Tel: (604) 689-1659; Fax: (604) 689-1722 September 21, 1999 Symbol: FED.V Company Arranges Loan The Company wishes to announce that it has arranged a loan in the principal amount of $50,000 from two private companies. The loan is for a term of three months at an annual interest rate of 12%. The loans shall be repaid by Fedora by November 30, 1999. As a bonus for this loan Fedora agrees to issue 40,000 common shares at a deemed price of $0.25. These shares are subject to a hold period in accordance with the policy of the Vancouver Stock Exchange. There is no finders fee payable in this transaction. ON BEHALF OF THE BOARD ?Dennis L. Higgs?