Exhibit 99.1
News Release
November 1, 2000 Symbols: CDNX - WIZ
OTC - WIZZF
FWB - WSJ
WSi ANNOUNCES LOAN AGREEMENT
WSi Interactive Corporation ("WSi") is pleased to announce that it has entered
into an interest bearing Loan Agreement under which the Lender will loan CDN
$500,000 to WSi (the "Loan"). These funds will be used by WSi for working
capital purposes.
The Lender shall have the right at any time prior to repayment of the Loan, to
convert all or part of the outstanding principal amount of the Loan into common
shares of WSi. The deemed price per share for conversion is the lesser of $0.33
or the market price at the time of conversion. Interest accrued on the Loan will
be converted into common shares of WSi at the market price at the time of
conversion. The Loan shall be due and payable on April 29, 2001.
As security for repayment of the Loan, WSi has agreed to provide a General
Security Agreement to the Lender to be registered as a first charge against the
assets of WSi.
Any shares acquired by the Lender upon conversion of the Loan or accrued
interest shall be subject to a four month hold period commencing on the date of
the Agreement.
The Agreement is subject to approval by the Canadian Venture Exchange.
Proposed Repricing of Warrants
On June 30, 2000, WSi announced the closing of a private placement of 1,781,000
units at a price of $0.73 each for gross proceeds of $1,300,130. Each unit
consisted of one share and one warrant to purchase an additional share at an
exercise price of $0.91 per share. The warrants expire on June 30, 2002. All
shares issued under the units and any shares issued on exercise of the warrants
are subject to a hold period expiring on October 30, 2000. To date, none of the
1,781,000 warrants have been exercised.
In accordance with CDNX policies, WSi is proposing to reduce the exercise price
of 1,137,099 warrants from $0.91 to $0.40. The aggregate number of repriced
warrants to be held by Insiders of WSi will be 178,099. The term of the warrants
will remain unchanged at June 30, 2002. The remaining 643,901 warrants are held
by Insiders and will remain at the original exercise price of $0.91.
<PAGE>
The proposed reduction to the warrant exercise price is subject to approval by
CDNX.
Proposed Amendment to Stock Options
Subject to CDNX approval, WSi is proposing to reprice the following outstanding
options to an exercise price of $0.35 per share:
(a) 358,667 options originally granted on July 12, 1999 at an exercise
price of $0.50 per share. Expiry date is July 12, 2004;
(b) 130,000 options originally granted on December 21, 1999 at an
exercise price of $0.52 per share. Expiry date is December 21, 2004.
These options were all issued to employees or consultants of WSi or its
subsidiaries under the 1999 Stock Option Plan which was previously approved by
the shareholders of WSi at the last Annual General Meeting. None of the options
proposed for repricing are held by Insiders of WSi.
About WSi Interactive Corporation
WSi generates revenue by marketing and selling products and services based on
its core competencies of integrated marketing, web and business development
services and by investing in content and infrastructure of Internet businesses.
The three divisions that represent the core of WSi are direct marketing,
Internet marketing, and web development and hosting services. All three are
complementary and provide total solutions to a wide variety of client
objectives. These divisions are complemented by a dedicated team of business
development professionals who actively seek growth opportunities and investments
for WSi. WSi generates revenue from new businesses by providing development
support based on those same core competencies.
To receive information on WSi by e-mail, please forward your Internet address
to: [email protected]
ON BEHALF OF THE COMPANY
"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.
