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Gold/Mining/Energy : MLM Millennium Network Corp -- Ignore unavailable to you. Want to Upgrade?

To: Edward Sawicki who wrote (469)	12/16/1999 8:44:00 AM
From: Edward Sawicki	Read Replies (1) \| Respond to of 482

Millennium completes acquisition of Lyco Logistics Millennium Network Corp MLM Shares issued 8,180,929 Dec 15 close $0.75 Thu 16 Dec 99 News Release Mr. Bernie Lauser reports Millennium Network has completed the acquisition of Lyco Logistics, a fully automated e-commerce distribution centre. Thomson Kernaghan & Co. Ltd. acted as agent in securing $4-million (U.S.) in bridge financing to facilitate both the acquisition and planned expansion. Millennium has created a wholly owned subsidiary, Lyco Logistics 2000 Inc., which has purchased all the assets of Lyco and the contracts to carry on the logistics and products fulfilment business for $3.75-million (Canadian) in cash. Lyco has received a down payment of $1.5-million (Canadian) with the balance of $2.25-million (Canadian) payable without interest by June 30, 2000. Under the terms of the bridge financing facility, the funds are to be advanced in several tranches scheduled for Dec. 1, 1999, April 1, and June 30, 2000, and are repayable with interest at the rate of 10 per cent per year on or before 120 days after the advance thereof. If the amounts are not repaid on their due dates, the lenders have the right to convert the amounts owing into common shares for a period of five years from Nov. 26, 1999, at a rate of 50 Canadian cents per share for the first two years, and thereafter at the rate of 75 Canadian cents per share in the third year, 85 Canadian cents per share in the fourth year and 95 Canadian cents per share in the fifth year. As consideration for the establishment of the facility, the corporation granted warrants to purchase 3.2 million common shares for a period of two years at 50 Canadian cents per share. The corporation has the right to call for the exercise of these warrants during the second year if the average trading price of its shares exceeds 66 U.S. cents per share. The first tranche of the credit facility in the amount of $1.6-million (Canadian) has been advanced and has been applied towards the purchase of Lyco Logistics. "The $4-million (U.S.) bridge loan allows us flexibility to open additional distribution facilities and expand the service we provide to e-commerce companies not only in Canada but also into the all-important U.S. market," stated Bernie Lauser, president and chief executive officer of Millennium.