News Release: Jumbomall Convertible Note Agreement & Board Changes
May 11, 2000
Document date: Thu 11 May 2000
Published: Thu 11 May 2000 09:45:02
Document No: 134526
Document part: A Market Flag: Y
Classification: Issued Capital - Other , Director Appointment/Resignation
JUMBOMALL.COM CORPORATION LIMITED 2000-05-11 ASX-SIGNAL-G
HOMEX - Brisbane
JUMBOMALL CONVERTIBLE NOTE AGREEMENT
E-commerce technology company Jumbomall.com Corporation Limited (Jumbomall), today announced that a convertible note agreement had been entered into which will provide the Company with a minimum of $500,000 funding. Furthermore, the agreement provides the opportunity for the Company to receive a larger amount of funding should the noteholder elect to convert to a larger amount of shares, up to 19.9% of the current issued capital of the Company.
The Directors believe that together with recent downsizing and restructuring the Company will quickly achieve a positive cash flow position and have sufficient working capital to continue pursuing global alliances currently under negotiation.
In addition, the Company is also pleased to announce that two new members have joined the board namely Mr Alan Phillips and Mr Earl Evans. Both gentlemen have considerable commercial and restructuring experience in public companies and will help the Company pursue new opportunities.
The current Chairman, Mr David Merson and Director Mr Brian Jones have retired from the board. Both gentlemen have been instrumental in the listing and initial growth of the company and their substantial contribution has been reflected in the growth to date.
The material terms and conditions of the Convertible Note are as follows:
1. The note can be converted into a maximum of 19.9% of the current issued capital of the company at the discretion of the noteholder.
2. The number of shares issued on conversion will depend on the conversion price paid by the noteholder and the price per share at the time of conversion which will be 80% of the average price of the company's shares traded on ASX over the 5 day period prior to conversion.
3. On conversion each share issued will have a free attached option exercisable in 2 years at an exercise price of 20 cents.
4. The note is subject to shareholder approval.
The Convertible Note will be underwritten by Removale Pty Ltd for the conversion amount of $500,000.
Full details of the Convertible Note will be available in the forthcoming Notice of Meeting and Explanatory Memorandum.
The Company's Chief Executive Officer and largest shareholder, Mr Mike Veverka, is pleased to advise that the company has delivered better than expected growth over the last 6 months. An example of this is the number of stores using the technology has grown from 2,500 to 3,900 over the previous 6 months.
"This puts the company in an excellent position to attain profitability earlier than expected", said Mr Veverka. "The focus now is on increasing efficiency by reducing growth related costs".
Following these changes, the new board structure will be:
Chairman: Mr Alan Phillips
Chief Executive: Mr Mike Veverka
Non Executive Director: Mr Earl Evans
Joint Company Secretary: Mr Bruce Burrell and Mr Mike Dart
The Company's office will remain at;
Level 30, Riverside Centre
Brisbane OLD 4000
Ph: 1800 333 705
Fx. 07 3831 9720
GENERAL MEETING OF SHAREHOLDERS
The company will call a general meeting of shareholders to approve the issue of the note and issue of shares and options, on conversion.
For further enquiries, please contact:
Mike Veverka, CEO
Ph: (07) 3831 3705
Fax: (07) 3831 9720