UNION CAPITAL LIMITED 2000-03-27 ASX-SIGNAL-G
HOMEX - Brisbane
Union Capital Limited advises that it has signed a Heads of Agreement
with the proprietors of the business called Shopaholic, whereby Union
will fund 50% of the initial start up costs of this technology
company in joint venture with private investors. Union will earn a
32.5% interest in the company for an investment of $2.5 million. The
first payment will be $500,000 in April 2000 and the remaining
payments will be spread over 12 months. As Union spends each $500,000
it will earn a 6.5% interest.
Shopaholic is a very powerful product search engine. Shopaholic
provides online shoppers with a simple tool that will search multiple
online retail and auction sites with the one search request. The
results are compiled in an easy to read listing so shoppers can
compare product and price from multiple e-commerce sites at a glance.
With Shopaholic the best deals can be found on the web instantly,
significantly cutting search time. Once located and "clicked", the
hyperlink leads the shopper directly to the purchase page of the
supplier offering the goods.
The principal of Shopaholic is Justine Carter. Justine has been
marketing various companies and products since 1993. In this time she
has worked for two major multinational agencies, Young & Rubicam and
George Patterson Bates Interactive, on blue chip clients such as
Citibank, Apple Computers, Novell Software (Y&R) to AGL, Unilever,
Department of Health (GPB). At the beginning of 1999 Justine left GPB
to join Internet start-up; Stuff Online Auctions as Marketing
Director. After successfully launching the site, Justine secured
Stuff Auctions as one of the top three auction sites in Australia,
keeping company with Sold.com.au and Go Fish.
In November 1999, Justine left Stuff Auctions to work full time on
Shopaholic is still in the development stage and will not be released
to the market before May 2000. The formal agreement between Union and
Shopaholic, which will include a due diligence process, is likely to
be signed within a month.
Union Capital Limited is continuing to evaluate new technology
opportunities on an on-going basis. However, the Company has no other
proposed new investments at this stage.
Union's cash position presently stands at $21.8 million. This strong
funding position has arisen from a recently completed series of share
placements. These funds are projected to be spent equally on the
Company's mineral prospects in Iran, and into new internet technology
investments. As Union's cash resources are now very strong, the
Directors are not contemplating any further capital raisings in the
R B Murdoch