Dynasty Components Receives Private Placement
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[Ottawa, ONTARIO] Dynasty Components Inc. has completed a private placement of CDN $1,500,000 principal amount of convertible unsecured subordinated debentures. The funds will be used to repay bank debt, finance software development and other working capital purposes.
The debentures are for a two year term, carry a 10 percent interest rate to maturity or conversion, are convertible any time at the option of the holder into common shares of the company at $5.00 per share and are convertible at the option of the Company, after the first year, if the market price of the company's common shares is at least $7.50 for a specified period.
Dynasty Components, headquartered in Kanata, Ontario, specializes in connecting suppliers and customers in the information technology (IT) area. The company's DCIenable division is an e-business solutions provider which enables clients to use the Internet to drive productivity and profitability. The DCIenable suite of integrated e-business solutions provides clients with all the elements needed for implementing an effective e-business strategy, including: Web/portal development and marketing, integration services, e-payment solutions, hosting and ASP services, logistics management and e-learning. DCIenable delivers customized solutions and offers a seamless, one-stop shop with a single point of contact and one point of accountability.
The company's third quarter results for the three months ended September 30, 2000 reported revenues of $6,424,797, an increase of 23 percent over the same period last year. Earnings before amortization of goodwill were $93,503 compared to a loss of $100,842 for the third quarter of fiscal 1999. The net loss for the quarter was $87,048 as compared to a net loss of $129,978 for third quarter 1999. For the nine months ended September 30, 2000, DCI reported revenues of $19,086,892 representing a 10 percent increase over revenues of $17,340,597 for the same period in 1999.
Last month, TELUS Corporation, one of Canada's major telecommunications companies, entered into an alliance with DCIenable to provide e-business solutions in Eastern Canada. Under the agreement, DCIenable and TELUS will jointly develop, market and deliver custom e-business solutions to business customers in the Ottawa region. The alliance provides both companies with an expanded customer base demographic, additional technical and service capabilities and seamless delivery of "end-to-end" e-business solutions ranging from web development to bandwidth and related services. DCIenable also announced last November that its ISP-ASP division located in Montreal will offer advanced e-commerce security solutions and related services through Nortel's Shasta 5000 technology. DCIenable is the first company in Canada to service clients through Nortel's Shasta 5000 Broadband Service Node (BSN) technology.