CoyoteNet Receives Orders to Install Additional 20 Internet Terminals; Magna Retains Wolverton Securities to Sponsor CoyoteNet Deal; Private Placement Financing Increased to $300,000.VANCOUVER, BC--(BUSINESS WIRE)--July 7, 1999-- Robert Archer, President of Consolidated Magna Ventures Ltd. (CMV-VSE) is pleased to announce that CoyoteNet Inc. received orders in the month of June to install an additional 20 internet terminals. This will bring the total operating terminals up to 50 in July, a 67% increase from the 30 terminals operating at the end of May. CoyoteNet has recorded an average 50% growth rate in revenues every 3 months since startup last year. Eleven new terminals have already been shipped and are currently being installed in Vancouver, Victoria, Lake Louise Lake Louise can mean: Canada
On June 15th, Magna announced that it had signed an option agreement to acquire CoyoteNet Inc., an internet access See how to access the Internet. company. CoyoteNet Inc. is a privately owned, Vancouver based company in the business of providing coin-operated internet terminals in "high traffic" locations for public access to the internet, principally for collecting and sending e-mail, checking stock quotes or surfing the 'net. Magna has an extension from CoyoteNet until August 31, 1999 to complete its due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and arrange a $500,000 financing for CoyoteNet in order to exercise its option to acquire CoyoteNet. CoyoteNet has offered Magna 1.25 million shares at $0.40 in return for the $500,000 financing. The Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). halted Magna's stock from trading pending their review of additional information regarding CoyoteNet. The VSE See DOS/VSE. VSE - Virtual Storage Extended expressed their concern that Magna's shares may trade up on the fundamentals of CoyoteNet and they had no CoyoteNet documentation on file for public disclosure. At the request of the VSE, Magna retained a member firm, Wolverton Securities, to complete an initial review of Magna and CoyoteNet and sponsor the proposed transaction. Wolverton has now completed their review and agreed to act as Magna's sponsor. The CoyoteNet business plan and financial statements are now available for public viewing at Magna's offices during normal business hours BUSINESS HOURS. The time of the day during which business is transacted. In respect to the time of presentment and demand of bills and notes, business hours generally range through the whole day down to the hours of rest in the evening, except when the paper is payable it a bank or by a , or on the CoyoteNet website, www.coyotenet.ca. Wolverton has also agreed to act as agent for the brokered private placement financing, which is now increased to $300,000, or 2 million units at $0.15 per unit, each unit to consist of one common share and one half common share purchase warrant. The VSE has repriced these warrants so that one full warrant gives the unit holder the right to purchase one additional common share at $0.30 within a one year period. Company insiders may subscribe for a portion of this offering if approved by the VSE. Magna had previously agreed to settle $300,000 in debts for stock in the company, consisting of 2 million shares at $0.15. The majority of this debt is to company insiders and the $0.15 debt settlement will only proceed if approved by the VSE. CoyoteNet shareholders will receive mostly escrowed shares Escrowed Shares Shares held in an escrow account and in most cases cannot be traded or transfered until certain circumstances like time horizon have been reached. The use of escrow for holding shares is often done during acquisitions and for performance-based executive incentives. subject to release provisions according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. VSE policy. Magna has also agreed to pay introduction fees of $10,000 upon the closing of the transaction to the arms length parties who introduced Magna to CoyoteNet. Consolidated Magna Ventures Ltd. is a growth-oriented mineral exploration company listed on the Vancouver Stock Exchange (Symbol: CMV-VSE). Magna relies on litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. protection for statements that are not historical facts but are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involving known and unknown risks and uncertainties that could cause actual results to vary materially from the targeted results. ON BEHALF OF THE BOARD OF DIRECTORS CONSOLIDATED MAGNA VENTURES LTD. Robert A. Archer President The vancouver stock exchange neither approves nor disapproves the contents of this news release which was prepared solely at the discretion of management. |
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