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Microcap & Penny Stocks : Bid.com International (BIDS) -- Ignore unavailable to you. Want to Upgrade?

To: Mr Stock who wrote (633)	7/30/1998 1:14:00 AM
From: John BOYCE	Respond to of 37507

Great Day for BII,Closed on high,(Shorters lost out today). Financing is great for company and market reacted to the news. For all the doom and gloomers.good luck, but the potential here is fantastic IMO.Good luck JB

To: Mr Stock who wrote (633)	7/30/1998 7:14:00 AM
From: reg	Respond to of 37507

Sorry BBS have asked their subscribers not to violate their copyright without first receiving permission.

To: Mr Stock who wrote (633)	7/30/1998 8:52:00 AM
From: Cush	Read Replies (1) \| Respond to of 37507

With the editor's permission, I'm posting the following BBS update on Bid.com As I see it, this is an example of the way in which BBS examines the issues in both a positive & negative light. Despite comments posted to this thread, the majority of BBS companies that I've followed have primarily traded on (or were in the process of moving to) senior exchanges. I think we all find the VSE a little unpredictable however even there Laurel has highlighted a couple of good stocks to watch. For example, I first heard of ATF through BBS. So here goes; good reading - BAY $TREET BYTE$:ÿ July 29:ÿ BID.COM BID.COM (BII,TSE:$1.50) *********************** Featured August '97 @ $1.10 Well the good news is BID.COM is finally financed (see news release below) and out of a series of perpetual 'quiet' periods, which means they are now finally free to build the "BUZZ!" and move on. The dilution at this price is unfortunate and the association with Yorkton is not going to be popular - I have already had my own little tantrum about it! I do believe those brave enough to hold onto this stock are going to be well rewarded in the not too distant future but I appreciate the fact that it has not been an easy mental exercise.ÿ I have had the advantage of numerous lengthy interviews/meetings with BII management over the past year and still have great confidence in their abilities to surprise the Canadian investment industry with a success story here.ÿ There has been a failure to obtain early visibility in the industry, which I think could have been better achieved, but the difficulty of doing so in Canada, where the technical experts are so completely skeptical about Internet stocks has not made it easy either! Positives: BID.COM announces that it has completed the financing necessary to execute its business plan and eliminate the general fear that investors had about BID.COM running out of money.ÿ The business risk that prompted the retail investor sell-off over the past few months has now been eliminated.ÿ Also, the selling overhang from the fund that held the largest share of the previous financing and was forced to sell many Canadian issues as a result of big redemptions, may finally be cleaned up. The main difference between this Yorkton underwriting and the previous one is that this offering has broad support from New York, the West Coast, Europe, and Canadian institutions - it has been well over subscribed following a broad road show by management on both sides of the Atlantic (after over 30 presentation in the past few weeks), which should bode well for after market support.ÿ It is a testimony to the strength of the BID.COM story, to achieve an oversubscribed small cap offering within this adverse small cap market. Senior management can finally move away from the 7 months they have spend fund raising and get back to business development.ÿ CEO Paul Godin is currently in Ireland which apparently is shaping up to be the primary center for international Internet commerce in Europe. Negatives: 1) This is Yorkton again. But what real alternatives did the company have? The US$10 to $15 million financing size required by BID.COM to be of interest to credible US investment banks is excessively dilutive at current Canadian dollar levels combined with current BID.COM stock prices. This should be the Company's last financing in Canada - next planned financing will be a US IPO, with the support of BID.COM's strategic partners and top tier US investment banks.ÿ BID.COM having the money to execute its business plan is more important than the underwriter this time.ÿ Notwithstanding our previous disappointment with Yorkton's trading habits, they have a credible analyst who understands BID.COM's business model well, and management didn't have to spend the next few months in additional due diligence educating analysts in other investment banks who may have a better name, but who also have little understanding of this sector and little interest in doing a small cap financing in this marketplace. 20-20 hindsight says BID.COM should have remained private and just never bothered raising money in the Canadian public marketplace. 2) Another institutional short selling opportunity? At these price levels and with revenues growing 300% last quarter, short positions on BID.COM's stock by knowledgeable investors are highly unlikely.ÿ The selling that occurred previously this year was both market driven by the general flight to quality by Canadian institutions and the unprecedented liquidity run on small cap portfolios that forced the selling of stocks that had any real volume - BID.COM being one of the few with volume.ÿ With broader distribution, pro-active investor relations, a sector which is popular in the US, a US IPO in the making, and evidenced business plan execution ... this has never been a more bullish time for BID.COM.ÿ 3) This is excessive dilution. It is unfortunate that a financing had to be done that these stock levels.ÿ But when could BID.COM reasonably anticipate that the Canadian small cap sector would rebound or that US investors would be willing to put the stock in play and drive it to higher prices.ÿ The loss in shareholder value would have been much greater if management was forced to slow down their business plan because of lack of financial resources or if management continued making a career out of raising money for the company in adverse market conditions rather than implementing its business development initiatives. BID.COM is now positioned to seize a first mover advantage in Europe, move forward with its business-to-business initiatives and position for a US offering on schedule - all of which should enhance shareholder value over the longer run.ÿ Summary: BID.COM is due for some positive momentum. For those who have lost patience with BID.COM there is a marketplace that is willing to take your stock.ÿ US institutions in particular are participating in this underwriting on the expectation of a NASDAQ IPO this fall and this underwriting is the first stepping stone toward achieving this goal. The clue is in the statement: "Each warrant will be exercisable to acquire one share at $1.65 for a period ending on the date which is the earlier of 10 days after the filing of a registration statement or preliminary prospectus for a U.S. public offering and 12 months following the closing date."ÿ Warrant holders are expecting to exercise warrants near term and a NASDAQ IPO pre-supposes a stock price of in excess of C$6.ÿ US institutions do not appreciate the necessity of trading on Canadian exchanges, even the TSE. Very well known US players are expected to sponsor BII onto NASDAQ.ÿ We can expect support soon from a high profile PR firm in the US. News Release: " ÿÿÿÿ Bid.Com International Inc - ÿÿÿÿ Special warrant financing ÿÿÿÿ Bid.Com International Inc BII ÿÿÿÿ Shares issued 21,023,000 1998-07-27 close $1.6 ÿÿÿÿ Tuesday Jul 28 1998 ÿÿÿÿ Mr. Paul Godin reports ÿÿÿÿ BID.COM International has entered into a bought deal agreement with Yorkton Securities in connection with the issue and sale of 8,100,000 special warrants by the company and 500,000 special warrants by management of the company. The special warrants will be issued and sold at $1.40 for total gross proceeds to the company ofÿ$11,340,000 and to the selling shareholders of $700,000. The transaction is subject to regulatory and shareholder approval and is scheduled to close on or about Aug. 4, 1998. ÿÿÿÿ Subject to adjustment in some events, each special warrant will entitle the holder to acquire, for no additional consideration, one unit consisting of one share and one-half ÿÿÿÿ warrant of the company. Each warrant will be exercisable to acquire one share at $1.65 ÿÿÿÿ for a period ending on the date which is the earlier of 10 days after the filing of a ÿÿÿÿ registration statement or preliminary prospectus for a U.S. public offering and 12 ÿÿÿÿ months following the closing date. In the event that BID.COM fails to obtain receipts for ÿÿÿÿ a final prospectus qualifying the distribution of the securities underlying the special ÿÿÿÿ warrants from applicable securities regulators prior to some prescribed deadlines, each ÿÿÿÿ special warrant will be exercisable to acquire 1.07 units (in lieu of one unit). ÿÿÿÿ BID.COM intends to use the net proceeds for advertising and marketing, business to ÿÿÿÿ business development, research and development and working capital. ÿÿÿÿ The special warrants may not be sold in the United States. " ÿ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ URL: eucanect.com Bidding On Bay Street (BBS), Copyright 1997, is published by Van Wyck Publications.ÿ Information contained in the Newsletter is obtained from the companies featured and other sources believed to be reliable, but accuracy and reliability cannot be guaranteed.ÿ The opinions expressed are strictly those of the writer and should not be considered a solicitation to purchase or sell individual securities mentioned herein. BBS is written from an individual investor's viewpoint; the editor and/or individuals contibuting information to the newsletter may own shares in companies followed therein. Investors are urged to obtain further information regarding specific companies and obtain financial advice where necessary to insure investment decisions fit individual needs and resources.ÿ Van Wyck Publications will not accept any form of compensation, directly or indirectly, from companies for advertising, public relations or any other services.ÿ We do insist on cooperation from companies in obtaining information and respect for the Individual Investor's right to information.