By: E&P Staff CityXpress Corp., a leading provider of online auctions for newspapers, announced Monday that its shareholders will be asked to approve a $2 million investment by Knight Ridder in the company on May 28 during its Annual General Meeting in Vancouver. Investors will also be asked to authorize a conversion by Lee Enterprises of its convertible debenture, secured loan and accrued interest on its notes into shares of the company's Common Stock.
"The investment agreement with Knight Ridder and conversion by Lee provides the company with the capital required to accelerate its growth over the coming years and gives CityXpress the backing of two major and influential newspaper chains," Phil Dubois, president and CEO of CityXpress said in a statement.
On April 9, 2004, Lee Enterprises converted $3,500,000 in convertible debentures into common shares of the company. When the Knight Ridder investment is complete, Lee will convert its remaining loans and interest to common shares, removing an additional approximately $720,000 in debt from CityXpress.
"We believe that this is a good deal and one that will enable the Company to create real value for all shareholders," Dubois said.
CityXpress held its first auction in 2001 and has since conducted more than 175 for newspapers, generating more than $42 million for the papers.
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