<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
(AMENDMENT NO. 1)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: MAY 13, 1999
--------------------------------------------------------------
CORNUCOPIA RESOURCES LTD.
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
BRITISH COLUMBIA, CANADA 0-16778 NONE
- ------------------------------------------------------------------------------
(State or other jurisdication of (Commission (IRS Employer
incorporation) File Number) Identification No.)
540 THE MARINE BUILDING, 355 BURRARD STREET, VANCOUVER, B.C. V6C 2G8
- ------------------------------------------------------------------------------
(Address of Principal Executive Office)
Registrant's telephone number, including area code: (604) 687-0619.
Unless otherwise indicated, all references to "dollars" and "$" are
to Canadian dollars.
- ------------------------------------------------------------------------------
Page 1 of 21
<PAGE>
CORNUCOPIA RESOURCES LTD.
<TABLE>
<CAPTION>
TABLE OF CONTENTS PAGE
<S> <C>
ITEM 1: CHANGES IN CONTROL OF REGISTRANT -
ITEM 2: ACQUISITION OR DISPOSITION OF ASSETS -
ITEM 3: BANKRUPTCY OR RECEIVERSHIP -
ITEM 4: CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT -
ITEM 5: OTHER EVENTS -
ITEM 6: RESIGNATION OF REGISTRANT'S DIRECTORS -
ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS 3
ITEM 8: CHANGE IN FISCAL YEAR -
ITEM 9: SALES OF EQUITY SECURITIES PURSUANT TO REGULATION S. -
SIGNATURES 20
EXHIBITS INDEX 21
</TABLE>
2
<PAGE>
CORNUCOPIA RESOURCES LTD.
GENERAL
Unless the context otherwise requires, the "Registrant" means Cornucopia
Resources Ltd. and the "Company" means the Registrant and its subsidiaries.
This report amends the Registrant's Form 8-K filing, dated March 11, 1999, to
include copies of the audited financial statements of Stockscape Technologies
Ltd., consent letter from Ellis Foster, auditors to Stockscape Technologies
Ltd. and unaudited pro forma consolidated financial statements and notes at
December 31, 1998, required under Items 2 and Item 7 - 4(b) and (c).
All references to number of common shares and per share amounts in this Form
8-K/A reflect the subdivision of the Registrant's common shares ("Common
Shares") on a two-for-one basis on July 7, 1987.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this report constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995
(the "Reform Act"). Such forward-looking statements involve known and unknown
risks, uncertainties, and other factors which may cause the actual results,
performance, or achievements of the Company to be materially different from
any future results, performance, or achievements express or implied by such
forward-looking statements. Such factors include, among others, results of
merger or sale of assets, mineral property exploration and development costs
and results, reclamation obligations, fluctuation of gold prices,
competition, uninsured risks, capitalization and commercial viability and
requirements for obtaining bonds, permits and licenses.
ITEM 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) SUPPLEMENTAL FINANCIAL STATEMENTS
1. Report of Ellis Foster, Independent Auditors to Stockscape Technologies
Ltd.
2. Supplemental Balance Sheets of Stockscape Technologies Ltd. at December 31,
1998 and September 30, 1998 and September 30, 1997.
3. Supplemental Statement of Income and Deficit of Stockscape Technologies
Ltd. for the three months ended December 31, 1998 and years ended September
30, 1998 and September 30, 1997.
4. Statement of Changes in Financial Position of Stockscape Technologies Ltd.
for the three months ended December 31, 1998 and years ended September 30,
1998 and September 30, 1997.
5. Notes to Supplemental Financial Statements of Stockscape Technologies Ltd.
at December 31, 1998 and September 30, 1998 and September 30, 1997.
(b) PRO FORMA FINANCIAL STATEMENTS
Unaudited pro forma consolidated Balance Sheets, Statement of Operations,
and Notes to unaudited pro forma consolidated financial statements at
December 31, 1998.
(c) EXHIBITS
<TABLE>
<S> <C>
23.1 Consent of Ellis Foster, dated May 13, 1999..................
27.1 FDS (For SEC use only).......................................
27.2 FDS (For SEC use only).......................................
</TABLE>
3
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Financial Statements
December 31, 1998
INDEX
Auditors' Report
Balance Sheet
Statement of Income and Deficit
Statement of Changes in Financial Position
Notes to the Financial Statements
4
<PAGE>
AUDITORS' REPORT
TO THE SHAREHOLDER OF
STOCKSCAPE TECHNOLOGIES LTD.
We have audited the balance sheets of STOCKSCAPE TECHNOLOGIES LTD. as at
September 30, 1997, September 30, 1998 and December 31, 1998 and the
statements of income and deficit and changes in financial position for the
periods then ended from October 1, 1996 to December 31, 1998. These financial
statements are the responsibility of the company's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.
In our opinion, these financial statements present fairly, in all material
respects, the financial position of the company as at September 30, 1997,
September 30, 1998 and December 31, 1998 and the results of its operations
and the changes in its financial position for the periods then ended in
accordance with generally accepted accounting principles. As required by the
Company Act of the Province of British Columbia, we report that, in our
opinion, these principles have been applied on a consistent basis over the
period of review.
Vancouver, Canada "ELLIS FOSTER"
March 25, 1999 Chartered Accountants
5
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Balance Sheet
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
December 31 September 30 September 30
1998 1998 1997
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT
Cash and short term investments $ 58,732 $ 99,045 $ 778
Accounts receivable 74,742 29,005 19,940
Prepaid expenses and deposits 8,920 7,712 1,431
- -----------------------------------------------------------------------------------------
142,394 135,762 22,149
CAPITAL (note 3) 95,314 100,753 75,805
INTANGIBLE (note 3) 8,270 6,992 3,081
- -----------------------------------------------------------------------------------------
$ 245,978 $ 243,507 $ 101,035
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 100,506 $ 76,583 $ 10,259
Deposits from clients - 11,926 -
Unearned revenue 55,224 75,098 -
- -----------------------------------------------------------------------------------------
155,730 163,607 10,259
LONG TERM DEBT (note 4) 672,988 579,311 90,832
- -----------------------------------------------------------------------------------------
828,718 742,918 101,091
- -----------------------------------------------------------------------------------------
SHARE CAPITAL AND DEFICIT
SHARE SUBSCRIPTIONS (note 5) 200,000 200,000 200,000
SHARE CAPITAL (note 5) 57,500 57,500 57,500
DEFICIT (840,240) (756,911) (257,556)
- -----------------------------------------------------------------------------------------
(582,740) (499,411) (56)
- -----------------------------------------------------------------------------------------
COMMITMENTS (note 6)
$ 245,978 $ 243,507 $ 101,035
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
</TABLE>
Approved by the Director:
"JOHN J. BROWN"
- -------------------------
John J. Brown
6
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Statement of Income and Deficit
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Three Months
Ended Year Ended Year Ended
December 31 September 30 September 30
1998 1998 1997
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCOME $ 68,422 $ 170,157 $ 15,250
WEB SITE DEVELOPMENT AND MAINTENANCE 74,365 337,494 184,758
- ----------------------------------------------------------------------------------------------
GROSS PROFIT (LOSS) (5,943) (167,337) (169,508)
- ----------------------------------------------------------------------------------------------
MARKETING AND ADMINISTRATION
Advertising and promotion 12,398 48,661 23,948
Allowance for doubtful accounts - 6,657 -
Bank charges 861 1,496 264
Commissions, salaries and other services 36,708 171,961 39,401
Communications, supplies and office 8,043 40,624 20,242
Insurance and professional services 403 18,140 3,361
Interest on long-term debt 18,973 44,479 832
- ----------------------------------------------------------------------------------------------
77,386 332,018 88,048
- ----------------------------------------------------------------------------------------------
NET (LOSS) FOR THE PERIOD (83,329) (499,355) (257,556)
DEFICIT, beginning of period (756,911) (257,556) -
- ----------------------------------------------------------------------------------------------
DEFICIT, end of period $(840,240) $(756,911) $(257,556)
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
LOSS PER SHARE (note 2) $ (0.09) $ (0.53) $ (0.27)
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Statement of Changes in Financial Position
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Three Months
Ended Year Ended Year Ended
December 31 September 30 September 30
1998 1998 1997
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CASH USED FOR OPERATING ACTIVITIES
Net (loss) for the period $ (83,329) $(499,355) $(257,556)
Item not affecting cash:
Amortization 8,416 35,895 17,539
- ----------------------------------------------------------------------------------------------
(74,913) (463,460) (240,017)
Changes in non-cash working capital (54,822) 138,002 (11,112)
- ----------------------------------------------------------------------------------------------
(129,735) (325,458) (251,129)
- ----------------------------------------------------------------------------------------------
CASH PROVIDED BY (USED FOR) INVESTMENT
ACTIVITIES
Investment in trademarks (1,758) (5,150) (3,852)
Purchase of capital assets (2,497) (59,604) (92,573)
- ----------------------------------------------------------------------------------------------
(4,255) (64,754) (96,425)
- ----------------------------------------------------------------------------------------------
CASH PROVIDED BY FINANCING ACTIVITIES
Long-term debt 93,677 488,479 90,832
Share subscriptions - - 200,000
Share capital - - 57,500
- ----------------------------------------------------------------------------------------------
93,677 488,479 348,332
- ----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH (40,313) 98,267 778
CASH, beginning of period 99,045 778 -
- ----------------------------------------------------------------------------------------------
CASH, end of period $ 58,732 $ 99,045 $ 778
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Notes to Financial Statements
As at December 31, 1998 and September 30, 1998 and 1997
- ------------------------------------------------------------------------------
1. INCORPORATION
The Company (formerly 523833 B.C. Ltd.) is incorporated under the laws
of the Province of British Columbia and its principal activity is the
provision of services to establish and maintain clients on the world
wide web. The Company's website, Stockscape.com, has been established
as an entrance point on the internet for interested parties to access
various information about public companies and various reports written
by other parties on those companies.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Short Term Investments
Short-term investments are valued at the lower of cost or market.
(b) Capital and Intangible Assets
(i) Capital assets are recorded at cost and amortized
over the estimated useful life of the asset on a
declining balance basis at the following annual
rates.
<TABLE>
<S> <C>
Computer Equipment 30%
Computer Software 100%
Equipment and furniture 20%
</TABLE>
In the year an asset is purchased, the amortization
rate is one-half of the annual rate.
(ii) Leasehold improvements are amortized on a
straight-line basis over the three year lease term.
(iii) Trademarks are recorded at cost and amortized on a
straight-line basis over five years.
(iv) Development and maintenance costs of the corporate
website are being expensed as incurred.
9
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Notes to Financial Statements
As at December 31, 1998 and September 30, 1998 and 1997
- ------------------------------------------------------------------------------
(c) Revenue Recognition
Revenue is usually recognized in the period services are
performed for the clients. Monthly maintenance fees received
in advance of services to be performed are recorded as
unearned revenue.
(d) Income Taxes
The provision for income taxes are based on the accounting
income. Deferred income taxes arise as a result of recognizing
expenses and revenues in different time periods for accounting
and tax purposes. Such timing differences arise principally
from amortization costs foregone.
(e) Financial Instruments
The Company's financial instruments include cash and short
term investments, accounts receivable, accounts payable, and
long term debt. The fair value of these financial instruments
approximate carrying values.
(f) Segmented Information
The Company operates in only one business segment - the
provision of services to establish companies on the internet.
There is only one geographic location of the Company which is
in Canada and substantially all of the assets of the Company
are used in the provision of internet services.
(g) Loss Per Share
Basic loss per share was calculated based on the weighted
average number of shares outstanding during the period. Fully
diluted loss per share was calculated based on the issuance of
shares for the share subscription proceeds. Pro-forma fully
diluted loss per share was calculated as if shares were issued
for the conversion of the long term debt at the beginning of
the December 31, 1998 period (notes 5 and 10).
<TABLE>
<CAPTION>
December 31, September 30, September 30,
1998 1998 1997
---------------------------------------------------------------------------
<S> <C> <C> <C>
Basic $ (0.09) $(0.53) $(0.27)
Fully diluted (0.05) (0.29) (0.15)
Pro forma fully diluted (0.006) - -
</TABLE>
10
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Notes to Financial Statements
As at December 31, 1998 and September 30, 1998 and 1997
- ------------------------------------------------------------------------------
3. CAPITAL AND INTANGIBLE ASSETS
<TABLE>
<CAPTION>
December 31, September 30, September 30,
1998 1998 1997
-------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL ASSETS
Computer equipment $124,319 $122,517 $ 78,841
Computer software 13,861 13,166 8,960
Office equipment 8,883 8,883 4,772
Leasehold improvements 7,611 7,611 -
-------------------------------------------------------------------------------------
154,674 152,177 92,573
Less: accumulated amortization (59,360) (51,424) (16,768)
-------------------------------------------------------------------------------------
Net book value $ 95,314 $100,753 $ 75,805
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
INTANGIBLE ASSETS
Trademarks $ 10,760 $ 9,002 $ 3,852
Less: accumulated amortization (2,490) (2,010) (771)
-------------------------------------------------------------------------------------
Net book value $ 8,270 $ 6,992 $ 3,081
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
</TABLE>
4. LONG TERM DEBT
The Company has a long-term loan outstanding to its sole shareholder,
of $672,988 (September 30, 1998 - $579,311, September 30, 1997 -
$90,832) which is repayable on demand and bears interest at a rate of
12% per annum.
The shareholder has agreed to fund the Company's operations until a
change of control is completed. Additional advances will be made on the
same terms and conditions as the outstanding loans.
11
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Notes to Financial Statements
As at December 31, 1998 and September 30, 1998 and 1997
- ------------------------------------------------------------------------------
5. SHARE CAPITAL
(a) Authorized:
1,000,000 common shares without par value.
By resolution dated March 26, 1999 authorized capital has been
increased to 100,000,000 common shares without par value.
(b) Issued:
<TABLE>
<CAPTION>
Number of Shares Amount
-----------------------------------------------------------------
<S> <C> <C>
Issued for cash 750,000 $ 7,500
Issued for cash 200,000 50,000
-----------------------------------------------------------------
Balance, September 30, 1997 950,000 57,500
-----------------------------------------------------------------
Balance, September 30, 1998 950,000 57,500
-----------------------------------------------------------------
Balance, December 31, 1998 950,000 $57,000
-----------------------------------------------------------------
-----------------------------------------------------------------
</TABLE>
(c) During the period ended September 30, 1997, the Company
received Share Subscriptions for 800,000 common shares at a
subscription price of $0.25 per share. The funds received for
the share subscriptions were non-interest bearing. These
shares were issued on March 26, 1999.
(d) The Company agreed to convert $825,000 of the long term debt
(note 4) into common shares at $0.10 per share, such that an
additional 8,250,000 shares would be issued to the
shareholder. These shares were issued on March 26, 1999.
6. COMMITMENTS
The Company has the following commitments relating to lease
obligations. The future minimum lease payments are as follows:
<TABLE>
<CAPTION>
Year Payment
---------------------------------------------------
<S> <C>
1999 $ 62,360
2000 44,520
2001 12,258
---------------------------------------------------
$119,138
---------------------------------------------------
---------------------------------------------------
</TABLE>
12
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Notes to Financial Statements
As at December 31, 1998 and September 30, 1998 and 1997
- ------------------------------------------------------------------------------
7. RELATED PARTY TRANSACTIONS
(a) A Company controlled by the president of the Company provides
reception, accounting, administrative and management services
to the Company. Office space, supplies, and employee benefits
were also provided and are included in the payments, as are
out of pocket travel expenses. During the period ended
December 31, 1998, the Company paid $14,490 (September 30,
1998 - $65,794, September 30, 1997 - $47,306) for these
services. Included in accounts payable is $17,934 payable to a
company controlled by the president of the Company (September
30, 1998 - $13,185, September 30, 1997 - $nil). These expenses
are incurred in the normal course of business and are at
market rates.
(b) The shareholder has long term loans outstanding of $672,988
(1998 - $579,311, 1997 - $90,832) to the Company to sustain
operations. Interest of $18,973 (September 30, 1998 - $44,479,
September 30, 1997 - $832) was accrued during the period (note
4).
(c) The shareholder is also a client of the Company and during the
current period paid $1,589 (September 30, 1998 - $6,372,
September 30, 1997 - $3,210) to the Company for internet
services.
8. INCOME TAXES
The Company has incurred losses for Canadian income tax purposes of
approximately $644,383 which can be carried forward to reduce taxable
income in future years.
These losses will expire as follows:
<TABLE>
<CAPTION>
Year Amount
----------------------------------------------
<S> <C>
2003 $ 1,026
2004 238,159
2005 405,198
----------------------------------------------
$644,383
----------------------------------------------
----------------------------------------------
</TABLE>
The potential income tax benefits of these losses have not been
recognized in these financial statements.
13
<PAGE>
STOCKSCAPE TECHNOLOGIES LTD.
Notes to Financial Statements
As at December 31, 1998 and September 30, 1998 and 1997
- ------------------------------------------------------------------------------
9. YEAR 2000 ISSUE
The Year 2000 Issue arises because many computerized systems use two
digits rather than four to identify a year. Date-sensitive systems may
recognize the year 2000 as 1900 or some other date, resulting in errors
when information using year 2000 dates is processed. In addition,
similar problems may arise in some systems which use certain dates in
1999 to represent something other than a date. The effects of the Year
2000 Issue may be experienced before, on, or after January 1, 2000,
and, if not addressed, the impact on operations and financial reporting
may range from minor errors to significant systems failure which could
affect an entity's ability to conduct normal business operations. It is
not possible to be certain that all aspects of the Year 2000 Issue
affecting the Company, including those related to the efforts of
customers, suppliers, or other third parties, will be fully resolved.
10. SUBSEQUENT EVENTS
(a) On March 26, 1999, the Company converted the shareholder loan
into common shares of the Company and the number of authorized
common shares of the Company was increased to 100,000,000 shares
(notes 4 and 5).
(b) Effective date of March 1, 1999, the Shareholder agreed to sell
its shares to Cornucopia Resources Ltd., a publicly traded
company, by exchanging all of the outstanding shares of the
Company for 10 million common shares of Cornucopia, subsequent
to Cornucopia completing a share consolidation on a ten for one
basis, and changing its name to StockScape.com, if available.
14
<PAGE>
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1998
<TABLE>
<CAPTION>
Stockscape Stockscape Cornucopia
December 31/98 December 31/98 December 31/98 Pro Forma Pro Forma
C$ US$ US$ Note Adjustments Consolidated
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE SHEETS
ASSETS
Cash and cash equivalents 58,732 38,304 103,949 5(d) 1,304,376 1,446,629
Accounts receivable 74,742 48,746 25,844 74,590
Prepaid expenses and deposits 8,920 5,818 21,180 26,998
Investment in Vista Gold Corp. 0 234,305 234,305
- -------------------------------------------------------------------------------------------------------------------------
142,394 92,868 385,278 1,782,522
- -------------------------------------------------------------------------------------------------------------------------
Investment in Great Basin Gold
Ltd. 0 0 3(a) 1,681,422 1,681,422
Capital assets 95,314 62,163 11,701 73,864
Mineral properties and deferred
exploration expenses 0 1,874,895 3(a) (1,874,892) 3
Patents & trademarks 8,270 5,394 0 5,394
- -------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 245,978 160,424 2,271,874 3,543,205
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued
liabilities 100,506 65,549 101,277 166,826
Unearned Revenue 55,224 36,016 0 36,016
- -------------------------------------------------------------------------------------------------------------------------
155,730 101,565 101,277 202,842
Long term debt 672,988 438,915 0 5(e) (438,915) 0
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 828,718 540,480 101,277 202,842
- -------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
SHARE CAPITAL
Share Subscriptions 200,000 130,438 0 5(f) (130,438) 0
Common shares 57,500 37,501 38,119,366 5(f) 130,438
5(e) 438,915
5(d) 1,304,376
(38,119,366)
(193,470)
2(c) 2,170,597 3,888,357
- -------------------------------------------------------------------------------------------------------------------------
257,500 167,938 38,119,366 3,888,357
Deficit (840,240) (547,995) (35,948,769) 2(c) 35,948,769 (547,995)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (582,740) (380,056) 2,170,597 3,340,363
- -------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 245,978 160,424 2,271,874 3,543,205
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to pro forma financial statements.
15
<PAGE>
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Stockscape Stockscape Cornucopia
December 31/98 December 31/98 December 31/98 Pro Forma Pro Forma
C$ US$ US$ Note Adjustments Consolidated
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Product sales 226,839 152,949 0 152,949
Production costs 327,205 220,622 0 220,622
Reclamation 0
- ------------------------------------------------------------------------------------------------------------------------------
Operating profit or loss (100,366) (67,673) 0 (67,673)
Interest and other income 1,462 986 70,394 2(c) (70,394) 986
- ------------------------------------------------------------------------------------------------------------------------------
(98,904) (66,687) 70,394 (70,394) (66,687)
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Selling, General and
administrative expenses 304,693 205,443 968,455 2(c) (968,455) 205,443
(Gain) on disposal of mineral
property 0 (180,972) 2(c) 180,972 0
Loss on sale of Touchstone
Resources Co. 2(c),3(a) 193,470
2(c),3(a) (193,470) 0
(Gain) on disposal / write
down of investments 0 (9,482) 2(c) 9,482 0
- ------------------------------------------------------------------------------------------------------------------------------
304,693 205,443 778,001 (778,001) 205,443
- ------------------------------------------------------------------------------------------------------------------------------
LOSS BEFORE INCOME TAXES (403,597) (272,131) (707,607) 707,607 (272,131)
Income tax 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) FOR THE PERIOD (403,597) (272,131) (707,607) 707,607 (272,131)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
BOOK VALUE PER SHARE 0.18
NET INCOME (LOSS) PER SHARE (0.01)
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 18,159,483
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to pro forma financial statements.
16
<PAGE>
NOTES TO CONSOLIDATED PRO FORMA FINANCIAL STATEMENTS
1. PROPOSED ACQUISITION AND BASIS OF PRESENTATION
THE ACCOMPANYING UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS OF
CORNUCOPIA RESOURCES LTD. HAVE BEEN COMPILED FROM AND INCLUDE:
(a) the audited consolidated financial statements of Cornucopia
Resources Ltd. ("Cornucopia") as at December 31, 1998 and for the
year ended December 31, 1998. The Cornucopia audited financial
statements are prepared using the United States dollar as the
reporting currency.
(b) The audited financial statements of Stockscape Technologies Ltd.
("Stockscape") as at December 31, 1998 an for the year ended
September 30, 1998 and for the three months ended December 31, 1998.
The Stockscape audited financial statements are prepared using the
Canadian dollar as the reporting currency (note 2b).
FOR MORE DETAILED INFORMATION, READERS SHOULD REFER TO THE AUDITED FINANCIAL
STATEMENTS OF CORNUCOPIA INCLUDED IN ITS FORM 10K AND TO THE FINANCIAL
STATEMENTS OF STOCKSCAPE INCLUDED IN EXHIBIT 27.1 OF THIS FORM 8K.
THESE UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS GIVE EFFECT TO
THE PROPOSED TRANSACTIONS, AS DETAILED IN THE SHARE EXCHANGE AGREEMENT
BETWEEN CORNUCOPIA AND STOCKSCAPE, DESCRIBED IN NOTES 3, 4 AND 5 BELOW. THE
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEETS HAVE BEEN PRESENTED AS THOUGH
THE TRANSACTIONS OCCURRED ON DECEMBER 31, 1998. THE UNAUDITED PRO FORMA
STATEMENT OF OPERATIONS HAVE BEEN PREPARED AS THE TRANSACTIONS HAD OCCURRED
ON JANUARY 1, 1998.
IN THE OPINION OF MANAGEMENT, THE UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL
STATEMENTS INCLUDE ALL THE ADJUSTMENTS NECESSARY FOR FAIR PRESENTATION IN
ACCORDANCE WITH CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
THE PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS ARE NOT INTENDED TO REFLECT THE
RESULTS OF OPERATIONS OR THE FINANCIAL POSITION OF THE COMPANY WHICH WOULD HAVE
RESULTED HAD THE TRANSACTIONS BEEN EFFECTED ON THE DATES INDICATED ABOVE.
FURTHER, THE PRO FORMA FINANCIAL INFORMATION IS NOT NECESSARILY INDICATIVE OF
THE RESULTS OF OPERATIONS OR THE FINANCIAL POSITION THAT MAY BE OBTAINED IN THE
FUTURE.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) These pro forma financial statements for the year ended December 31,
1998, are prepared on the basis of accounting principles generally
accepted in Canada. Pro forma consolidated balances after
adjustments agree, in all material respects, to accounting
principles generally accepted in the United States.
(b) The balance sheet of Stockscape has been translated into United
States dollars using the rate of exchange prevailing at December 31,
1998 and the statement of operations of Stockscape has been
translated into United States dollars using the average rate of
exchange for the period.
(c) As this proposed transaction will result in the former shareholders
of Stockscape owning greater than 50% of Cornucopia's common shares,
accounting principles applicable to reverse takeovers have been used
in the compilation of this pro forma consolidated balance sheet to
record the acquisition by Stockscape of Cornucopia using the
purchase method, with Cornucopia deemed to be the purchased entity.
3. SALE OF TOUCHSTONE RESOURCES COMPANY
The Company has entered into an agreement dated March 2, 1999 (the "Sale
Agreement"), subject to shareholder approval, pursuant to which the
Company will sell its wholly-owned subsidiary, Touchstone Resources
Company, ("Touchstone") to Great Basin Gold Ltd., ("Great Basin") its
joint venture partner in
17
<PAGE>
the Ivanhoe Property, in exchange for 2,750,000 common shares (the
"Great Basin Shares") and 250,000 share purchase warrants of Great
Basin. The share purchase warrants will entitle the Company to purchase
additional shares of Great Basin at $2.00 per share for one year.
(a) A pro forma adjustment to record the sale of Touchstone for
consideration of the Great Basin Shares is accounted for at C$1.25
the market value attributed to the Great Basin Shares on the date of
the agreement with a 25% discount taken off the value because of
restrictions on resale and voting rights of the Payment Shares.
4. SHARE CONSOLIDATION
At the Meeting shareholders will be asked to consider and, if thought fit,
to pass a special resolution approving:
(a) The consolidation of the Company's authorized and issued common
share capital from TWO HUNDRED MILLION (200,000,000) common shares
to TWENTY MILLION (20,000,000) common shares, (i.e.) one (1) new
common share for ten (10) pre-consolidation common shares without
par value.
(b) An increase in the Company's authorized common share capital to its
pre-consolidation level of Two Hundred Million (200,000,000) common
shares without par value.
No pro forma adjustments arise from the proposed share consolidation.
5. ACQUISITION OF STOCKSCAPE
The common share consolidation and name change are fundamental to the
Company's reorganization and are conditions precedent to completion of the
acquisition by the Company of Stockscape Technologies Ltd. ("Stockscape").
Stockscape is an Internet investment research provider and, after
acquisition of Stockscape, the business of Stockscape will become the
Company's primary business.
(a) Under the terms of the Share Exchange Agreement between the Company
and the owners of Stockscape dated March 2, 1999, the Company will
acquire all of the issued and outstanding shares of Stockscape by
issuing 10,000,000 post-consolidation Common Shares of the Company
(the "Payment Shares").
(b) This business combination will be accounted for under the purchase
method with Cornucopia deemed to be the purchased entity. In
application of reverse takeover accounting the legal subsidiary ie.
Stockscape is the continuing company for purposes of future
comparative and for presentation of shareholders' equity. This means
that the deficit in the consolidated financial statements
immediately after the reverse takeover will be the same as the
accounts of Stockscape at December 31, 1998. The cost of the
purchase, and the value attributed to the 10,000,000 Payment Shares
(note 6(b)), is determined to be the value of the net assets
acquired.
(c) Subsequent to the acquisition of all of the outstanding shares of
Stockscape, Cornucopia will change its name to Stockscape
Technologies Ltd.
(d) Further conditions precedent to the acquisition are commitments for
a financing of up to 4 million units of the Company to be completed
contemporaneously with the acquisition. The 4,000,000 unit financing
will be done on a post-consolidation basis at C$0.50 per unit to
raise maximum proceeds of C$2,000,000. Each unit will consist of one
common share and two share purchase warrants. One share purchase
warrant will be exercisable in the first year to acquire one
additional common share in the capital of the Company at C$0.65. The
second warrant will be exercisable for a period of two
18
<PAGE>
years to acquire one additional common share at C$0.95. The
warrants will have forced conversion features.
(e) Stockscape agreed on March 26, 1999 to convert long term debt to
common shares of Stockscape and pro forma adjustment of US$438,915
has been made.
(f) Share subscriptions recorded at US$130,438 December 31, 1998 have
been adjusted to reflect the subsequent issuance of common shares on
March 26, 1999.
6. SHARE CAPITAL
(a) Authorized share capital:
200,000,000 common shares without par value.
(b) Issued and outstanding
<TABLE>
<CAPTION>
Number of
Shares Amount
<S> <C> <C>
Balance, December 31, 1998, per Cornucopia
financial statements 41,594,834 $ 38,119,366
Consolidation of common shares on a 1 new for 10 old basis
(note 4a) (37,435,351) --
-------------------------------
4,159,483 38,119,366
Reduction in the book value of the continuing company's stated
share capital to that of Stockscape. -- (37,512,512)
-------------------------------
4,159,483 606,854
Issuance of common shares to the shareholders of Stockscape in
exchange for their shares of Stockscape
(note 5a) and (note 5b) 10,000,000 1,977,127
Issuance of common shares in private placement, condition
precedent to Share Exchange Agreement (note 5d) 4,000,000 1,304,376
-------------------------------
Pro forma balance, December 31, 1998 18,159,483 $ 3,888,357
-------------------------------
-------------------------------
</TABLE>
19
<PAGE>
CORNUCOPIA RESOURCES LTD.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CORNUCOPIA RESOURCES LTD.
/s/ Glenn H. Friesen
Date: May 13, 1999 --------------------------
Glenn H. Friesen
Vice President Finance and
Chief Financial Officer
20
<PAGE>
<TABLE>
<CAPTION>
EXHIBITS INDEX PAGE
- -------------- -------
<S> <C> <C>
23.1 Consent of Ellis Foster, dated May 13, 1999..................
27.1 FDS (For SEC use only).......................................
27.2 FDS (For SEC use only).......................................
</TABLE>
<PAGE>
EXHIBIT 23.1
Consent of Independent Auditors
We consent to the incorporation by reference in the registration statement
(Form S-8 No. 33-25974) on Form 8-K/A (Exhibit 27.1) of Cornucopia Resources
Ltd., of our report dated March 25, 1999, relating to the balance sheets
of Stockscape Technologies Ltd. as of September 30, 1997 and 1998 and
December 31, 1998 and the statements of income and deficit and changes of
financial position for each of the periods then ended in this current report
(Form 8-K/A) of Cornucopia Resources Ltd.
/s/ ELLIS FOSTER
Chartered Accountants
Vancouver, BC, Canada
March 25, 1999 and
amended at May 13, 1999
21
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1998 SEP-30-1998
<PERIOD-START> OCT-01-1998 OCT-01-1997
<PERIOD-END> DEC-31-1998 SEP-30-1998
<CASH> 58,732 99,045
<SECURITIES> 0 0
<RECEIVABLES> 74,742 29,005
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 154,674 152,177
<DEPRECIATION> (59,360) (51,424)
<TOTAL-ASSETS> 245,978 243,507
<CURRENT-LIABILITIES> 155,730 163,607
<BONDS> 672,988 579,311
0 0
0 0
<COMMON> 257,500 257,500
<OTHER-SE> (840,240) (756,911)
<TOTAL-LIABILITY-AND-EQUITY> 245,978 243,507
<SALES> 68,422 170,157
<TOTAL-REVENUES> 68,422 170,157
<CGS> 74,365 337,494
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 77,386 332,018
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (83,329) (499,355)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> (83,329) (499,355)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (83,329) (499,355)
<EPS-PRIMARY> (.09) (.53)
<EPS-DILUTED> 0 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 1,446,629
<SECURITIES> 0
<RECEIVABLES> 74,590
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,782,522
<PP&E> 73,864
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,439,907
<CURRENT-LIABILITIES> 202,842
<BONDS> 0
0
0
<COMMON> 4,785,060
<OTHER-SE> (547,995)
<TOTAL-LIABILITY-AND-EQUITY> 4,439,907
<SALES> 152,949
<TOTAL-REVENUES> 152,949
<CGS> 220,622
<TOTAL-COSTS> 205,443
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (272,331)
<INCOME-TAX> 0
<INCOME-CONTINUING> (272,331)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (272,331)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> 0
</TABLE>
