ElectroBusiness.com Inc.
TSX VENTURE : EB

ElectroBusiness.com Inc.

June 02, 2006 16:35 ET

electroBusiness.com Inc. Announces Corporate Update

CALGARY, ALBERTA--(CCNMatthews - June 2, 2006) - electroBusiness.com Inc. (the "Corporation") (TSX VENTURE:EB) is pleased to announce that it has implemented the compensation structure for new management as negotiated between the new management and the Corporation in March, 2006, and agreed to the amendment of the terms of certain debentures outstanding.

On March 7, 2006 the Corporation announced the retention of new management comprised of Art Smith as President of the Corporation, Ryan Lailey as Vice President Sales, Marketing and Investor Relations and Nazim Jiwa as Vice President Service Delivery. In March, 2006, the Corporation agreed to grant the new management stock options and shares in lieu of salary. The Corporation is now fulfilling the obligations of the agreements entered into with the new management in March, 2006.

Further to these agreements, the Corporation has granted stock options to purchase 1,875,000 common shares at a price of $0.11 per share for a period of five years to officers and directors of the Corporation. The stock option grant is subject to regulatory approval. The Corporation has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 are available for the grant of stock options. The options granted to the former management expire on, or about, June 9, 2006.

The Corporation has also agreed, subject to regulatory approval and shareholder approval, if required, to issue to the new management a total of 1,760,000 common shares in the context of the market. These shares are being accepted by new management in lieu of a portion of the their salary and as signing bonuses to retain their services. These amounts were negotiated prior to their joining the Corporation.

In addition, the Corporation has agreed to modify the terms and conditions of $65,000 in convertible debentures outstanding. The debentures are due August 14, 2006 and are being extended to December 15, 2006. Upon amendment each secured convertible debenture will be convertible into one unit of the Corporation, each unit consisting of one common share and one common share purchase warrant for each $0.14 of principal amount (excluding accrued but unpaid interest) of the debenture converted during the term of the debenture. Each warrant entitles the holder to purchase one common share until December 15, 2006 date at an exercise price of $0.22 per common share. Interest shall accrue on the principal amount at a rate of 10% per annum, compounded annually, with interest to be paid at conversion or on the maturity date. The debenture amendment is subject to regulatory approval. The Corporation has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 are available for the debenture extension and re-pricing.

The electroBusiness secure document exchange service connects users to a secure world allowing the exchange of any type of information with any number of locations, partners, suppliers or customers. The electroBusiness service is easy to use, affordable and flexible, improving productivity and profits.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • electroBusiness.com Inc.
    Ryan Lailey
    Vice President Sales, Marketing and Investor Relations
    (403) 260-6647
    Email: rlailey@electrobusiness.com