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Xentel | | . | Press Release - March 8, 2000 |
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Xentel DM Files Prospectus for $10 Million Offering
CALGARY, ALBERTA, March 8, 2000 - XENTEL DM Incorporated (CDNX:XDM) reports that it has filed a Prospectus qualifying up to 9,550,000 common shares for sale to the public at $0.80 per common share for aggregate gross proceeds to the corporation of up to $7,640,000. The Prospectus also qualifies for distribution of 2,950,000 common shares and 1,475,000 share purchase warrants issued in a prior private placement. "When it is received, this new capital should allow XENTEL to complete the integration of its recently acquired U.S. operation, wind-up all or a portion of a high-interest loan and provide the Corporation with capital to continue to build its North American operation," said Michael Platz, Chief Executive Officer. "North America's family-oriented live entertainment industry is highly fragmented but with this financing, XENTEL is in an unique position to build on its leadership position through further consolidation." During 1999's third and fourth quarter, the Corporation moved forward quickly with the integration of its U.S. acquisition by closing 110 call centres, terminating unprofitable events, renegotiating customer contracts and consolidating the operation's management team. The integration and restructuring is expected to result in XENTEL incurring a consolidated loss estimated at $2.5 million in 1999. "We anticipate XENTEL's Canadian operation to post a profit of $2 million but this will be offset by a $4.5 million loss in our U.S operation in 1999 due to one time restructuring charges," said Geoff Pickering, President. "While it is too early to provide audited figures, January and February of 2000 were profitable months for the combined entity and we expect this trend to continue." The Prospectus offering is expected to close in stages on or before April 7, 2000 but no later than May 8, 2000. XENTEL DM is one of North America's leading producers of family-oriented live entertainment, staging 400 events across North America in 1999 and planning to stage over 500 in 2000. XENTEL's success results from its proprietary sales approach. Its technologically advanced teleservices and sophisticated customer databases enable XENTEL to effectively pre-sell its events, thereby maximizing sales, increasing revenue and minimizing the number of unsold event tickets. XENTEL has over 300 clients and 2,500 employees in 26 offices across North America and is traded on the Canadian Venture Exchange under the symbol XDM. The Canadian Venture Exchange has neither approved nor disapproved of the contents of this announcement. For further information, please contact:
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