High Tide Resources Corp. press release
Nevada Bob's International Inc. - Sale of U.S. business assets closes in escrow
CSE - Canadian National Stock Exchange · Iron · Copper · Nickel · Cobalt · Canada
Private placement negotiated
TORONTO, Jan. 16 /CNW/ - Nevada Bob's International Inc. (the "Company") (TSX Venture Exchange - "NBI.U") announces that, further to its press release issued on October 31, 2005, the sale of certain of the assets (the "Assets") used in the operation of the Company's business in the United States (including, without limitation, the United States "Nevada Bob's" trademarks, the Company's rights (through its subsidiaries) under existing Nevada Bob's store license agreements and the domain name "nevadabobs.com"), has closed in escrow. Details with respect to this transaction are set out in the Company's information circular dated November 1, 2005 and the Company's material change report dated November 10, 2005, both of which can be obtained from SEDAR at www.sedar.com. The sale of the Assets closed in escrow to allow additional time to complete several closing conditions, including payment of the balance of the purchase price which is payable on closing (US$850,000 of the total purchase price for the Assets is payable on closing, subject to adjustment (the "Adjustment") for the amount of outstanding electronic gift cards). The amount of US$500,000 has been paid on account of the purchase price which is payable on closing, leaving a balance of US$338,276.35 (after the Adjustment) still outstanding (the "Outstanding Balance"). Interest is payable on the Outstanding Balance at the rate of 14% per annum from December 1, 2005 until the Outstanding Balance is paid. The outstanding closing matters must be completed by January 31, 2006, provided that this deadline may be extended to March 31, 2006. The amount of US$500,000 paid to date on account of the purchase price is not subject to escrow, but rather has been released to the Company and is non-refundable. License fees payable under the Nevada Bob's license agreements collected from October 1, 2005 (the effective date of the transaction is September 30, 2005) to January 31, 2006 (or March 31, 2006 if the escrow period is extended) will be applied in reduction of the Outstanding Balance. The Company further announces that it has negotiated a non-brokered private placement of up to 4,600,000 units of the Company (the "Units") at a price of US$0.055 per Unit for proceeds to the Company of up to US$253,000. Each Unit consists of one common share of the Company and one warrant of the Company, each such warrant entitling the holder to purchase one common share of the Company at a price of US$0.09 for a period of two years. The proposed purchasers of the Units are Arnold T. Kondrat (Chairman of the Board of the Company and a director of the Company) and Kevin R. Baker (President, Chief Executive Officer and a director of the Company). Both Mr. Kondrat and Mr. Baker are proposing to purchase up to 2,300,000 Units. Proceeds from this financing will be used for working capital. Closing of this transaction is subject to the approval of the TSX Venture Exchange.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.