Air Canada announced today that it has received
7.5 million commitment purchase warrants, each entitling its holder to
purchase over a five-year period one Advantex common share at a price of
$1.08. Canadian Imperial Bank of Commerce (CIBC) has also received the same
number of warrants.
In addition, Advantex has agreed to issue to Air Canada and CIBC
additional warrants to purchase up to 55 million Advantex common shares over
the said five-year period. The number of warrants issued each year will be
based on the contribution of both Air Canada and CIBC to Advantex`s annual
revenue growth. The exercise of the earned warrants issued each year will be
based on the prevailing market prices at the time of issue. The 70 million
common shares, which may be purchased by Air Canada and CIBC, represent
approximately 58% of Advantex common shares on a fully diluted basis.
The warrants were issued following the execution on November 21, 2000 of
a warrant agreement between Advantex, Air Canada and CIBC and the approval
thereof by the shareholders of Advantex.
The warrants were issued to Air Canada and CIBC in connection with the
execution of online loyalty marketing programs with Advantex by Air Canada and
CIBC, which will provide Air Canada Aeroplan members and CIBC Aerogold card
holders multiple opportunities to earn Aeroplan miles for a variety of online
activities developed by Advantex. In addition, CIBC and Advantex intend to
develop new customer relationship marketing programs for other CIBC VISA
credit cards in addition to the CIBC Aerogold credit card.
As part of these agreements, both CIBC and Air Canada will be represented
on Advantex`s Board of Directors.