NEXTERRA: A.NEX The Online Back experts

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NEXTERRA: A.NEX The Online Back experts

An SI Board Since September 1999

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Emcee: Tupulak	Type: Unmoderated

Introduction Compact

E-commerce Site Set to Take the Bite Out of Back Pain

Major new initiative to be launched in the ergonomic and back comfort
products field

TORONTO, Sept. 8 /CNW/ - Nexterra Property Group Inc., a junior capital
pool issuer whose common shares trade on the Alberta Stock Exchange under the
symbol ``NEX', announced today that it has signed letters of intent to
purchase the assets of Toronto-based Backs Etc. Inc. - an ergonomic and back
comfort products retailer - and certain related companies, for about $1.1
million. The acquisitions are non-arms length.
``Completing these transactions will enable Nexterra to quickly achieve
its goal of becoming the dominant online retailer for ergonomic and back
comfort products in the North American market,' said Gary Lands, President
and CEO of Nexterra.
In order to fund the acquisitions, as well as to provide capital to
commence development of the proposed e-commerce initiative Nexterra intends to
raise a minimum of $3 million by private placement and/or public offering. The
acquisitions and the financing will constitute Nexterra's ``Major
Transaction' and are subject to the approval of the Exchange. Additionally,
completion of the transactions is subject to a number of conditions for the
benefit of Nexterra including shareholder approval, general due diligence and
the success of the proposed equity financing.

THE TRANSACTIONS
----------------
Nexterra has entered into a letter of intent with BACKS etc. and Backs
Etc. Franchising Inc. for the purchase of franchising rights and assets
related to a retail location and corporate offices in Toronto. Specified
intellectual property rights will initially be licensed to Nexterra and it is
intended that Nexterra will acquire these rights for nominal consideration
after three years, provided that Nexterra has honoured certain commitments.
The sale price of $840,000 is to be satisfied by a combination of assumption
of liabilities in the amount of approximately $100,000, cash in the amount of
approximately $146,000, the issuance of approximately $130,000 in convertible
debentures (convertible into common shares of Nexterra at the option of the
holder at a price of $0.18 per share), bearing interest at prime plus 1%, and
the issuance of approximately 2,575,000 common shares of Nexterra (to be
issued at a price of $0.18 per share).
Nexterra has also entered into a letter of intent with Colane Inc., a
BACKS etc. franchisee, for the purchase of assets related to a retail location
in Richmond Hill, Ontario. The sale price of $270,000 is to be satisfied by a
combination of assumption of liabilities in the amount of approximately
$120,000, cash in the amount of approximately $58,000 and the issuance of
approximately 500,000 common shares of Nexterra (to be issued at a price of
$0.18 per share).
The parties have agreed to work towards the signing of definitive
agreements by September 22, 1999, with closing of the deal no later than
December 1, 1999.
BACKS etc. management will join Nexterra after the completion of the
transactions. Gary Lands and Alex Neuman are presently directors and officers
of the vendors, and will, on the completion of the transactions, become
co-chief executive officers of Nexterra. Mr. Lands is presently a director,
and President and CEO, of Nexterra.
Mr. Lands and Mr. Neuman through their respective holding companies,
presently each control:
50% of the issued shares of Backs Etc. Inc. and Backs Etc. Franchising
Inc.; and
25% of the issued shares of Colane Inc.
Upon the completion of the transactions, Mr. Neuman will join the board
of directors of Nexterra. Prior to his involvement with the vendors, Mr.
Neuman practiced corporate/commercial law in Toronto for 15 years.

THE ERGONOMIC AND BACK COMFORT PRODUCTS FIELD
---------------------------------------------
BACKS etc.'s target customer audience includes:
anyone who suffers from back pain (85% of adults will suffer from back
pain at some time in their lives and back pain ranks immediately
behind the common cold as the most common reason adults visit their
family doctors); and anyone who appreciates comfort.
Products presently offered by BACKS etc. include office seating,
ergonomic workstations, recliners and lounge chairs, sleep systems, pillows,
back supports, pain relief devices, and books. In due course, Nexterra intends
to expand the online offerings to include a broad array of general health and
wellness products.
Nexterra's decision to purchase these assets and launch a major online
retail initiative is bolstered by a research study conducted by
GreyInteractive - a division of Grey Advertising. The study consisted of a
market analysis and e-commerce opportunity report to address the size of the
potential online market in North America for ergonomic and back comforts
products.
GreyInteractive's study found that, through the intelligent development
and implementation of its on line strategy, Nexterra could position itself as
a leading North American online provider of ergonomic and back comforts
products, and ``... has an outstanding opportunity to successfully sell
ergonomic and comfort products via the Internet with a full-scale e-commerce
solution.' The study continues ``the competitive analysis... shows that
ergonomic and comfort product providers have not aggressively tapped into the
online market.'
The GreyInteractive study concluded that, at the end of 1998, the size of
the target market for the BACKS etc. product line - adults with an above
average income aged 30 to 60 years, who live in North America and shop online
- was 8.75 million.
Growth potential for this target market is significant given that:
total Internet usage in the United States is expected to double
between 1998 and 2002; and online purchasing of household goods,
including furniture - a category which represents a significant
percentage of BACKS etc.'s existing business - is expected to grow
from less than 1% today to about 9% of the market in the United States
by 2003.
In addition to seasoned management, BACKS etc. brings extensive product
knowledge, strong supplier relations, sensitivity to consumer needs and
ongoing cash flow. Nexterra's management believes that this, coupled with
Nexterra's ability to access public capital markets, make up the building
blocks of Nexterra's intention to become North America's leading online
retailer of ergonomic and back comfort products.

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
5	David, It is still halted and from the press release they won't be doing th	Tupulak	-	2/19/2000
4	is NEX trading again?	David Michaud	-	2/19/2000
3	NEXTERRA PROPERTY GROUP INC ("NEX-V") - Corporate Update Nexterra P	Tupulak	-	2/18/2000
2	The last couple of days someone has been buying up stock at $0.10 level, with 3	Tupulak	-	12/15/1999
1	Nexterra Property Group Inc. - Agreement Signed To Purchase A	Tupulak	-	11/23/1999

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