Exhibit 99.1
FOR IMMEDIATE RELEASE
NEWS RELEASE
eieiHome.com Inc. sells Canadian subsidiary
New York, NY - July 10, 2000 - eieiHome.com Inc. (the "Company") today announced
that it has completed the sale of eieiHome.com Inc. (Ontario) to a group of
investors led by the former founder of the subsidiary. As consideration for all
of the shares of the Ontario subsidiary, the Company received the sum of
$1,065,350 plus 2,250,000 common shares of eieiHome.com which are being returned
to treasury. The shares returned to treasury represent almost a 12% reduction in
the issued and outstanding common shares of the Company. The $1,065,350
consideration was satisfied through the return for cancellation of $346,500 of
eieiHome.com convertible debentures and a secured, short term promissory note in
the amount of $718,850. The promissory note may be satisfied in full through the
payment on or before July 21, 2000 of $500,000 in cash and $153,500 in either
additional convertible debentures returned for cancellation or cash. In
addition, the purchasers have agreed to assume responsibility for the operations
of the subsidiary and provide working capital from the effective date of June
26, 2000. The Company will submit the sale of the Canadian subsidiary to its
stockholders for ratification at a special meeting to be held at the earliest
opportunity. Simmonds Capital Limited (TSE:SMM), which owns approximately 33% of
the issued and outstanding common shares of the Company, has indicated that it
will vote its shares in favor of ratifying the transaction. At the same meeting,
the Company will ask the shareholders to approve a name change for the company.
The Canadian subsidiary operates an internet service, information
and e-commerce web site, providing information and related products and services
for homeowners, home buyers, and home service providers. The service was
launched last year into the Toronto market. This was the major operating
business of the Company.
Mr. Paul Hickey, Chairman of eieiHome.com, stated "Upon review of the Toronto
business results, the Board of Directors and management of the Company decided
not to continue to invest in the development of the eieiHome.com internet
business opportunity. We could not see a clear path to profitability for the
business. The business has been sold to a strategic group who are able to assume
responsibility for the existing operations. The Board of Directors is currently
evaluating new business opportunities for the Company. At the upcoming special
meeting, we intend to present to the stockholders the details on these new
acquisitions or investment opportunities."
eieiHome.com Inc. is a Delaware company whose shares are quoted on the OTC
Bulletin Board under the symbol "EIEI".
* * * * * * *
For further information contact:
Paul Hickey, Chairman David O'Kell, Secretary
EieiHome.com Inc. Simmonds Capital Limited
212-956-5422 (905) 837-9909
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