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Gold/Mining/Energy : Footmaxx YFT on CDNX -- Ignore unavailable to you. Want to Upgrade?

To: Cush who wrote (42)	1/29/2000 1:06:00 PM
From: Cush	Read Replies (1) \| Respond to of 64

News Release - Financing. As provided by Canada StockWatch Footmaax arranges $1-million in financing Footmaxx Holdings Inc FTMX Shares issued 35,766,224 Jan 27 close $0.27 Fri 28 Jan 2000 News Release Mr. John Fowler reports The company has arranged $1-million in financing with VenGrowth ManagementCapital Inc. and Lawrence & Company Inc., Footmaxx's major institutional investors, $500,000 of which was advanced today. This round of interim financing, which was arranged this week and approved by the board of directors of Footmaxx, will allow Footmaxx to reduce its bank indebtedness and finance its working capital requirements. The advances made today are in the form of two $250,000 convertible promissory notes, arranged as a private placement. The notes bear interest at a rate of 10 per cent per year. The notes have a conversion right pursuant to which the holders have the right, and in certain circumstances, the obligation to convert the indebtedness into secured 10 per cent convertible debentures of Footmaxx. Such debentures would be part of a proposed new series of debentures under the trust indenture between Footmaxx and Montreal Trust Company of Canada dated as of Sept. 30, 1997, as amended and restated Feb. 15, 1999. The notes are (and the debentures will be) convertible, at the option of the lenders at a conversion rate of 40 cents per common share into approximately 1.25 million common shares of Footmaxx. The second $500,000 tranche of this financing will be advanced when all formal documentation creating and issuing the convertible debentures is completed. VenGrowth currently owns 6,904,761 common shares, or 19.3 per cent of the issued and outstanding number of common shares of Footmaxx, and Lawrence currently owns 14,316,598 common shares, or 40.0 per cent, of the issued and outstanding number of common shares of Footmaxx. This advance and the previous financings of Footmaxx by VenGrowth and Lawrence will result in VenGrowth owning, or holding securities convertible into or exercisable for, approximately 15,341,581 or 34.7 per cent of the outstanding common shares (assuming their conversion or exercise rights and no other are fully exercised), and Lawrence owning, or holding securities convertible into or exercisable for, approximately 16,858,265 or 44.0 per cent of the outstanding common shares of Footmaxx (assuming their conversion or exercise rights, and no other, are fully exercised). VenGrowth and Lawrence have no agreement or arrangement respecting the voting of their securities or the acquisition of any further securities of Footmaxx. Other than the additional $500,000 tranche of this financing, neither VenGrowth nor Lawrence has any current intention to increase its beneficial ownership, control or direction over securities of Footmaxx. Pursuant to its governing legislation, VenGrowth is not permitted to acquire previously issued securities in the market. (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com