News Release - October 27Posted as part of advertising with InvestorExpo.com
Fedora's new board member; private placement; year-end earnings; expects
name change
Fedora Industries Inc FED
Shares issued 1,139,087 Aug 30 close $0.23
Wed 27 Oct 99 News Release
Mr. Dennis Higgs reports
Pursuant to its acquisition of Sportslink Direct Marketing Ltd.
("Sportslink"), David Houston has joined the board of directors of Fedora
Industries Inc. Mr. Houston is the president of Sportslink, which he
founded in 1997. Mr. Houston has a bachelor of physical education (honours)
degree from McMaster University and his career has been primarily in sales
and marketing.
The company has arranged a "part and parcel" private placement as part of
its commitment for the Sportslink acquisition. The private placement
comprises 1,500,000 special warrants at a price of 25 cents per special
warrant, to raise total proceeds of $375,000. Each special warrant is
convertible into one common share and one warrant for the purchase of an
additional share, exercisable for a period of two years at fifty cents in
the first year and 75 cents in the second year. The private placement is
subject to the closing of the Sportslink acquisition.
Prior to the shares of the company returning to trade, a pre-opening trade
of 1,525,000 shares at 25 cents will be conducted by Canaccord Capital
Corp., the company's sponsoring member. 930,000 of the shares to be sold,
representing 25.13 per cent of the company's issued capital, will be sold
by insiders of the company. The purchasers of the shares will be Sportslink
"President's List" people and new shareholders. The insiders intend to
employ $188,550 of the proceeds of sale to exercise previously issued
warrants of the company to purchase a total of 1,047,500 shares at 18 cents
per share.
Sportslink is in the business of retailing sporting goods through the
internet, via its website located at www.airbomb.com. Sportslink markets
products acquired from a variety of suppliers at discount prices.
Sportslink also distributes its own "airbomb" line of products, which are
products acquired at a significant discount from established manufacturers
and labeled with the company's "airbomb" private label. Sportslink had
revenues of $519,970 in the fiscal year ended March 31, 1999, its first
full year of business, and incurred a loss of less than $1,500 during this
same period.
The company is preparing the filing statement and other documentation to
complete a comprehensive filing with the Vancouver Stock Exchange in the
near future. Shortly following completion of this transaction, the company
expects to change its name to incorporate the "airbomb" or "airbomb.com"
name to reflect this acquisition.