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EXHIBIT 99.1
WSi INTERACTIVE CORPORATION Symbols: CDNX - WIZ OTC - WIZZF
May 31, 2000
NEWS RELEASE
WSI INTERACTIVE CORPORATION'S ANNOUNCES THIRD QUARTER RESULTS;
LETTER TO SHAREHOLDERS.
WSi Interactive Corporation's 9 month revenues totaled $4.1 million. In the 3rd
quarter of WSi's first year as a public company, revenue totaled $1.2 million.
The year to date net loss of $217,000 is after a charge for depreciation and
amortization of $399,000. Assets grew from $3.9 million to $8 million during the
quarter.
With ongoing revenue from WSi's network of online businesses, as well as revenue
from web and marketing service activities, management is confident that the
fiscal year goal of revenue of $6 million will be met by June 30, 2000. In the
direct marketing division, the lottery project is now fully underway and
billings for this project are expected to be a minimum of $1.5 million for the
fourth quarter.
SHAREHOLDER UPDATE
Since the beginning of this fiscal year, WSi has grown from less than 20
employees to its current 86 employees and eleven Internet businesses in various
stages of development. Not surprisingly, this rate of growth was not without
some pain.
The last quarter has been pivotal for WSi, and it is beginning to mature as an
organization. Management has recognized the need to ensure clarity of vision and
a culture to support such rapid growth. Considerable time and effort have been
devoted to corporate restructuring and the creation of an environment that is
conducive to good communication; an environment in which every individual has
the ability to contribute fully to the growth of the organization. As part of
this process, all employees have contributed to the creation of WSi's vision.
WSI'S VISION
WSi will be recognized as the best "total solution" Internet business incubation
partner. WSi will strive to be the leading resource for Internet entrepreneurs
and their companies to find top quality business, marketing and technological
expertise, people and venture capital.
While WSi is pursuing a strategy of steady profitable growth and remains focused
on the development of proprietary Internet businesses, it is balancing this work
with revenue-generating projects for third parties.
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WSi has spent significant amounts improving its infrastructure. Since the
beginning of the year, $300,000 has been invested in hardware and software for
the web development team. As part of WSi's physical expansion, there are
currently 32 workstations for programmers, designers and other web development
personnel. The production department now operates as a stand-alone profit
center. Approximately $800,000 of improvements have been made to server
hardware, strengthening WSi's ability to handle increasing traffic to its
businesses and facilitate WSi's convergence technology strategy.
In April, WSi also became a partner of IBM Canada. This alliance with IBM allows
WSi to take on business projects of virtually unlimited scope using IBM's
software solutions.
In the last quarter, WSi has made investments in Flashcandy.com and Nurv Media,
and formed a joint venture with RG Diamonds Inc. to build two diamond e-commerce
sites. WSi also started a new division, DNS Media, which is a full-service media
streaming solutions company to service the broadcast markets in the United
States and Canada. DNS Media Inc. intends to launch a broadband video delivery
network through strategic relationships it is currently developing.
Seasoned teams have been assigned to Targetpacks.com, Healthcreator.com, and the
hospitality vertical. WSi plans to find suitable public vehicles for
Healthcreator.com and the hospitality vertical to raise further development
funding. It is anticipated that investments in convergence technologies, a major
priority for WSi, will benefit the growth of Targetpacks.com.
InvestmentWorldNews.com's debut issue was a success and will continue to be
expanded and published, while at the same time serving to significantly increase
WSi's subscriber database.
The new corporate culture at WSi has also resulted in an increased awareness of
the financial objectives for the various projects WSi has, and a more stringent
process of due diligence has been implemented to review the steadily increasing
flow of Internet businesses and other opportunities. In light of this new
approach to managing growth, WSi's involvement in certain projects is under
review, and in some cases projects have been terminated.
In March, WSi announced that it was selling its Stocksecrets.com business to a
US public company, Internetfinancialcorp.com, the shares of which trade on the
OTC Bulletin Board market with ticker symbol "IFAN". It was a condition of the
transaction that IFAN would conclude a US$1 million financing which would be
used to develop and run the Stocksecrets.com business. IFAN has now advised WSi
that its previously announced US$1 million financing is not proceeding.
Consequently, WSi is not going forward with this sale. Despite IFAN's default,
the business of Stocksecrets is moving forward according to plan and continues
to generate revenue. WSi is currently considering alternative options for the
future spin off of Stocksecrets and will announce any material information at
the appropriate time.
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Also in March, WSi announced that it had entered into letters of intent for the
exclusive rights to a broadband telecommunications system from Global
Communications Inc. for Washington State and Canada. It was announced that the
transactions were subject to various conditions in favor of WSi, including due
diligence reviews and the entering into formal license agreements with Global
Communications. To date, WSi has not received the necessary due diligence
information and no formal license agreements have been entered into.
Consequently, WSi is currently looking for other opportunities in the broadband
and wireless sectors.
In other news, the private placement previously announced on April 25th at
$C2.15 is not proceeding at this time due to the recent volatility in the
market. Walter Maughan has resigned as a director of the Company. Management of
WSi wishes to thank him for his contribution in this past exciting year.
On behalf of the entire WSi team, we thank you, our shareholders, for your
continued support. We believe your company is taking the necessary actions to
continue our successful growth. We look forward to providing you with our fourth
quarter update and a copy of our first annual report this fall.
The Business of WSi
WSi Interactive Corporation is an innovative business development and marketing
firm whose objective is to capitalize on content and infrastructure
opportunities on the Internet. WSi builds, manages and markets online businesses
in the financial, e-tail and e-commerce, entertainment, and e-advertising
sectors.
WSi focuses on early-stage companies where it can add significant value to the
investment through a network of relationships and strategic alliances, using its
experience to help Internet companies to build traffic, develop brands, and
capitalize on a variety of revenue streams.
To receive information on WSi by e-mail or fax, please forward your Internet
address / fax # to [email protected] / fax: 1-877-499-5806.
To fax your request please complete the following
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Investor Relations Toll Free: 1-888-388-4636
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Website: www.ws-i.com
ON BEHALF OF THE COMPANY
/s/ Theo Sanidas
Theo Sanidas, President
This news release may contain forward-looking statements that involve risks and
uncertainties, including the impact of competitive products and pricing and
general economic conditions as they affect the Company's clients. Actual results
and developments may therefore differ materially from those described in this
release. No regulatory authority has reviewed nor accepted any responsibility
for the adequacy or accuracy of the contents of this release.
