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Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Syncrude who wrote (1537)	11/6/1999 5:54:00 PM
From: CIMA	Read Replies (1) \| Respond to of 5053

William Staudt turned this one down earlier this week (PP too rich IHO, IPO 1st quarter of next year): Further to news in Stockwatch Oct. 6, 1999, Kazz Industries Inc.(KAZ.AL) obtained a minority shareholder interest in i360 inc., a private company based in Tucson, Arizona. Kazz Industries owns 1 million shares of i360 inc. common stock, out of a total of 38 million shares outstanding. i360 is a next generation Internet solutions and interactive services provider. The company creates unique value by bundling best-in-breed, web-based services and applications with Internet access, giving its customers a total, integrated, convergence solution. i360 provides clients with a customized, privately branded, Internet portal system and delivers its services via desk-top computer and set-top box. i360 currently has 48 employees and is based in Tucson, Arizona. The company's five-story, 60,000 square foot headquarters building is located in the business section of downtown Tucson, next to the new federal courthouse. Satellite offices are located in Atlanta, Georgia, Louisville, Kentucky, St. Louis, Missouri, New Orleans, Louisiana, and Jacksonville, Florida. i360 will be offering its services to a select customer group on Oct. 26, 1999. "We're pleased to begin providing our Internet solutions and interactive services to these valued customers," said Bill Cochrane, i360's president and chief executive officer. "We're ready to serve them with our innovative customer service and technology solutions." New Directors and Executives ---------------------------- i360 also today announced the appointment of its new directors and executives. Mr. Cochrane has been named a director of i360. He is currently i360's chief executive officer and has held that position since the company's inception in June, 1999. He is a seasoned leader with almost 20 years experience in sales and marketing, new product design and development, and creating industry leading customer service levels. Prior to joining i360, Mr. Cochrane served in a variety of management and sales positions with Fortune 1000 companies such as Motorola and 3M Corporation. Larry Wiseman has been named chief operating officer and a director of i360. Most recently Mr. Wiseman was president and CEO of Internet Technology Solutions, Inc., a provider of advanced set-top boxes and technology solutions. Mr. Wiseman has over 25 years of experience in sales, management, and strategic planning with both start-up and established companies. M. Mark Urbania has been appointed chief financial officer of i360. Prior to joining i360, he served as director of corporate finance and administration for TK Holdings, Inc., a privately held $1 billion automotive safety systems supplier. At TK Holdings he managed all financial and administrative activities for 10 operating companies in North America, Mexico, and Brazil. Kazz Industries Inc.'s director and vice president of operations LeRoy Hucke has been appointed executive vice president of public affairs of i360. He joined Kazz Industries in 1993. In addition to his duties as director and vice president of operations, he also served as Kazz's point man in marketing the public entity. At i360, Mr. Hucke will be responsible for strategic alliance development, corporate culture and investor relations. Stephen Ridley has been named general counsel and director of i360. He brings to i360 over 20 years of experience as a corporate lawyer specializing in labor and employment relations law and has represented numerous Fortune 500 companies. He has extensive experience in corporate contract negotiations and the development of corporate affiliate programs in telecommunications, primarily long distance and cellular, and web-based companies. Bijan Moradi has been named a director of i360. He is currently working on a visionary solution that creates a bridge between complicated leading edge technologies and the simple needs of the everyday user. He has held numerous roles with Star II Promotions, including vice president of strategic alliances and national trainer. Mr. Moradi also served as chief information officer for a leading telecommunications company. Jay Zammit has been named a director of i360. He is currently a partner at the law firm of Burstall Ward in Calgary, Alberta, Canada where he practices exclusively in the areas of corporate finance and securities, with a particular emphasis on start-up and emerging companies. He advises on public and private financing matters as well as mergers, acquisitions, and take-overs. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com old url (better for printing)

To: Syncrude who wrote (1537)	11/7/1999 12:35:00 PM
From: Crazy Canuck	Respond to of 5053

>>As for what value will be generated out of the $19mm cash CDN is another matter. Getting into private placements is one thing. Timing the subsequent IPO (for those investments that will be successful, remember that not all will work out) is also another matter to consider. Will this value be created in 3 months, 6 months, 1 year or more? Will the market for IPOs remain favorable by then? Will the cost of the private placements go up? Does management have enough depth to correctly select and assess technology companies versus their mining background? How far can they go with just $19mm CDN ($12-13mm USD)? Not a criticism of the company or your work. Just a few observations that may be worthwhile to consider.<< Syncrude, these are all valid comments. I also asked many of these same questions before I decided to invest in this company. In my opinion, any investor who wants to be a success over the long haul has ask some hard questions, as you have. On that note, let me take a shot at responding to your questions / comments. Getting into private placements is one thing. Anyone, who has a large bank account will ALWAYS know someone who wants them to invest in their dreams. It seems like just months ago, it was the people who had the business ideas who were desperately searching for investors. I believe that with the success of the market, we have begun to see the playing field is now level out a bit. Those with the ideas are finding it much easier to get access to money. What this general trend does not show however is that to gain that all important edge, a new business has to be selective about which Angel or VC investor they link up with. The number of people who have ready money has grown, yet I believe that the number of groups who have the all important combination of both the experience and connections has stayed relatively constant. The really good firms are the ones who can help them grow, position, and connect their business so that they can to gain that all important edge in the business world. Timing the subsequent IPO (for those investments that will be successful, remember that not all will work out) is also another matter to consider. Before they come to "The Show", I believe that new companies who have been getting advice and guidance from their more experienced financiers and corporate promoters will be given a time line as to when it is best to do this. Both Mr. Staudt and Mr. Civelli have "been there - done that" many times before. These people know how to pick their shots. Will this value be created in 3 months, 6 months, 1 year or more? Good question. I believe that the value of this company's net worth will increase by at least a third (to close to $30 million CDN) in a little more than two months time. This is when I expect Medsite.com to come out with their IPO. What I don't know is when any of the other deals in JDX's pipeline are coming out. I suspect that we could see some interesting action sooner rather than later. I have decided to invest in their future potential. I know of no other company who has taken the length of time that they have taken to rework their business model so that they can come to the table with a solid plan for growth. Now, I have mentioned in an earlier post that I have already invested in this company (fairly heavily I might add), but I have decided to hold off loading up completely until I see the full picture. Will the market for IPOs remain favorable by then? I think we have already seen the market's response to that question. A number of months ago, many people were saying that the IPO market had dried up, it was flooded, the gravy days were over, etc. etc.. Look what has been happening lately. Some of the most successful IPO launches in the history of the stock market have just been launched. Because we are just starting this revolutionary change, I am absolutely convinced that the vast majority of businesses which are coming to the market and can offer a speed, cost, efficiency or paradigm shift benefit will be met with huge success. Will the cost of the private placements go up? I would have to say yes. This is due to the increase in available funds for new businesses. However, the new businesses (with savvy owners) will be very selective as to which firms they go to for help. The top new business ideas will seek out the top Investment Companies. Jordex does have the experiences and connections of Mr. Staudt, Mr. Civelli, and Mr. Graham to offer a new business. This boutique style of VC, with on experienced support to offer should attract many new firms. I also believe that Jordex's management team is well connected and will leverage this to the company's advantage. Does management have enough depth to correctly select and assess technology companies versus their mining background? I believe that What's Up With That did a good job of answering that question in his last post. But OTOH, these are people who seem to have done very well knowing how to pick businesses to seed and nourish. It could be argued fairly convincingly that these people have demonstrated they are adept at picking businesses that have a strong business model, good management, and a good niche in the market (Medsite.com appears to be one of those, don't you think? Many business publications do.) How far can they go with just $19 mm CDN ($12-13 mm USD)? With just $1.5 million, they have succeeded in securing an opportunity to see a real return of 500% (or more) on this investment. The connections they must have to get them into this PP in the first place has to be very impressive - to say the least. I am sure that Medsite.com had the luxury of being pretty darn selective as to who they brought into the deal. In my opinion, this bodes very well for both the quality, and profile, of the deals which might be coming down the pipe. I also seem to recall that the company has stated an intention to consider an additional financing - at a much higher price. This additional cash would obviously shore up their treasury, and it would open up even more possibilities for them. Remember, we are talking about Private Placements before the stocks are initially priced for their IPO debut. So in summary, although I understand your comments, I feel that the risk reward ratio here is tremendously weighted in Jordex's favour. This is why I am in, and this is also why I am excited about what could be coming out soon from the company. I will admit, it has been a relatively long wait for me, but it is also one that is now getting pretty exciting. Crazy Canuk