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 VANCOUVER, Sept. 14 /PRNewswire/ -- The following was issued today by Equity Investments Corp. (Montreal: EQM):
 Rights Offering
 Equity Investments Corp. (the "Company") announces that it has filed a preliminary prospectus to qualify for issuance of new securities to be issued pursuant to a Rights Offering. Under the terms of the Rights Offering, holders of Common Shares and Series 2 Shares, will receive transferable Rights to subscribe for up to 5,197,035 Series 3 Shares. Each shareholder will receive one Right to purchase one Series 3 Share at a Subscription Price of $1.80 each. The Subscription Price may be paid either in Canadian funds or by tender of a Put Option issued by Putco Holdings III Limited. Subscribers who exercise all of the Rights issued to them will be entitled to subscribe for additional Series 3 Shares, if any, available as a result of unexercised Rights ("the Additional Subscription Privilege").
 Each Series 3 Share will carry a fixed, cumulative, preferential dividend of 5.5 percent per annum ($0.10) per annum, payable semi- annually. The shares will be non-voting unless dividends have not been paid in full for two consecutive dividend payment dates; holders would then be entitled to one vote per Series 3 Share until all cumulative dividends in arrears have been paid in full.
 Each Series 3 Share may be converted into one Common Share at any time after February 1, 1994, at the option of the holder. The Series 3 Shares may be converted into Common Shares on the same basis and at the option of the Company, if at any time the closing price of the Company's Common Shares on a Canadian Stock Exchange is $3.00 or more for 20 consecutive rating days. The Company may, at any time, at its option, redeem the Series 3 Shares on 30 days notice at a redemption price of $3.00 per share plus any accrued and unpaid dividends thereon. During the 30 day notice period a holder of the Series 3 Shares may still convert the Series 3 Shares into Common Shares, as described above.
 First Marathon Securities Limited has agreed to act as agent, on a best efforts basis, to solicit subscriptions, for any Series 3 Shares remaining following the exercise of the Rights and the Additional Subscription Privilege.
 Details of the Rights Offering will be circulated to all shareholders when a receipt for a final prospectus is obtained from all Provincial securities regulators in Canada. The Rights Offering period will extend for 3 to 4 weeks from the date of the final prospectus.
 Completion of 100 Percent Takeover of SoftFUND
 In June 1993, the Company made a successful takeover bid for all of the outstanding common shares of SoftFUND Capital Partners Inc. (SoftFUND) on the basis of one Series 2 Share of the Company for two common shares of SoftFUND. Following the takeover bid, the Company held 97 percent of the outstanding shares of SoftFUND and has exercised its compulsory acquisition rights under the British Columbia Company Act and acquired the remaining shares of SoftFUND on the same basis as the takeover bid.
 Year End Change
 The Company has changed its year end from December 31 to June 30, to conform with the year ends of its two subsidiary companies, SoftFUND and MDSI Mobile Data Solutions Inc. ("MDSI").
 Year End Financial Results
 Total operating revenues for the year ended June 30, 1993 were $790,000. All of this revenue was earned by MDSI, during its first five months of operations commencing January 29, 1993, from software sales and installations (73 percent) and maintenance and service contracts (27 percent).
 Gross margin, as a percentage of sales, averaged 80 percent, resulting in a contributed margin of $629,000.
 The Company recorded income and investment gains, net of expenses and investment writedowns, of $294,000 from non-recurring events resulting from the divestment of its portfolio and the restructuring of its management and administration functions.
 Operating and administration expenses totalled $1,203,000, representing an increase of 160 percent over the prior year. The increase was primarily attributable to the expanded operations of the Company, including the consolidation of SoftFUND's and MDSI's expenses, and to the write-off of acquisition and reorganization costs.
 Summary of Year End Financial Results
 1993 1992
 $000s $000s
 Operating Results 790 ---
 Gross Margin 629 ---
 General and Administration
 Expenses (1,203) (451)
 Operating Loss (574) (451)
 Other Non-Recurring Income
 (Expenses) 294 (1,182)
 Minority Interests 1 ---
 Net Loss for the Year (279) (1,633)
 Loss per Share $(0.07) $(0.47)
 The Company is committed to "Building A Wireless Future" in the emerging wireless data transmission industry, focusing on the transfer of digital packet data using RF technology. Wireless data communications using RF technology is one of the fastest growing sectors of the telecommunications industry (currently a $3 billion market, forecast to reach $12 billion within ten years). This field is expected to grow rapidly as businesses aggressively adopt wireless devices in their search for improved productivity and customer service to satisfy the mobile worker's growing need for "Information On The Run."
 The coming revolution in the "Wireless World" will touch everyone. If, as an interested party, investor or industry partner, you would appreciate more information, call or fax us -- Anywhere, Anytime.
 -0- 09/14/93
 /CONTACT: Doug G. Hooper, president, or Ms. Rooky Driver, executive assistant to Peter Bradshaw, CEO, of Equity Investments, 604-682-1400/

CO: Equity Investments Corp. ST: British Columbia IN: CPR TLS SU: ERN

CC -- NYON1 -- 1551 09/14/93 06:00 EDT
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Publication:PR Newswire
Date:Sep 14, 1993

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