Cube dangles new offer for E-cademy

By Phil Boeyen, ShareChat Business News Editor

Tuesday 3rd July 2001

Investment company Cube Capital (NZSE: CUB), formerly Damba Holdings, is offering a combination of cash and loans to take a stake in online education business E-cademy (NZSE: ECH).

Cube is offering to inject $475,000 into E-cademy for a new issue of 158 million new shares at around a third of a cent ($0.003).

The company will also make an immediate loan to E-cademy of $100,000 to be repaid by the end of August at a rate 4% above the 90-day bank bill rate, and a $200,000 loan facility at the same rate for three years.

Cube also wants 50 million options at 2.5 cents exercisable before the end of August 2004, 50 million options at 4.5 cents exercisable before the end of August 2006, and to be allowed to appoint three directors.

"We request you put this proposal to your board and prepare appropriate documentation to put to you shareholders," Cube has told the company/

"We assert that given this transaction is clearly superior to the Matrix proposal you should cancel the meeting of 04/07/2001."

The E-cademy meeting planned for July 4 was to consider the placement of shares to Australian company Matrix IP.

Under a conditional agreement Matrix was to be issued with 200 million shares at $0.002 for $400,000 and 100 million options - 50 million at two cents and 50 million at four cents.

Matrix would also provide a secured loan of $200,000 on commercial terms.

E-cademy, which made a loss of $2.678 million for the year ended March, is seeking to raise funds to meet short-term working capital needs.

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