RealTime IT News

Mantaur Petroleum to control Videoflicks.com

Mantaur Petroleum Corporation agreed in principle to acquire a 51% interest in Videoflicks.com Inc., a private Ontario corporation that sells videos and related products on the Internet.

Videoflicks' proprietary software is based on a fully scalable systems architecture designed for Internet shopping. It established its video retail business in 1981 and has a two year history of Internet retailing of video movie products.

Mantaur is engaged in petroleum exploration in Mongolia and Trinidad. After completing the proposed acquisition of 51% of Videoflicks, Mantaur intends to concentrate on Videoflicks business, and dispose of its petroleum exploration interest.

The purchase price to be paid for the 51% interest in Videoflicks would be the maximum sum of $3 million, subject to adjustment based an independent valuation report to be received by Mantaur, and payable at Mantaur's option in cash, notes, and/or New Shares (at a deemed value of $0.75 per New Share).

Mantaur would also receive an option to acquire all or part of the remaining 49% of Videoflicks on terms to be negotiated based upon the valuation report. Mantaur intends to seek additional financing prior to closing, to be used to fund expansion of Videoflick's business.