Press Release: travelbyus
May 15, 2001
WHITE ROCK, BC -- travelbyus (OTC Bulletin Board: TRIP) yesterday announced completion of US$8 million in a convertible
note through Doerge Capital Management (a division of Balis Lewittes & Coleman, Inc.) of Chicago, IL and a
commitment for an additional US$23 million 10-year line-of-credit from a Midwest based lending source.
``We are very pleased with the vote of confidence the investment community has given our business plan and management's
commitment to move towards profitability,'' said Bill Kerby, acting chairman and CEO. ``We believe there should
no longer be any question as to whether selling travel on the Internet is a good idea. Industry observers have
been heartened by the recent announcements of Travelocity.com and Expedia.com's of their results. At the same time
we feel that our business model has been validated. Our web site has the most powerful search engine available.
To quote Kiplinger's, 'ITA Software consistently turned up the lowest fares and the most flight choices.' And our
business plan has always included merchant product. That's why we bought such companies like Global Leisure, Hawaii
Leisure, Cheap Seats, Gotham Media, and, most recently, American Vacation Resorts. This latest round of financing
enables us to move forward with the execution of our business plan.''
The convertible secured note is due on December 31, 2001, with interest at 12 percent. The note is convertible
anytime at the holder's option at $2.00 (US) per share. However, conversion within 90 days at $2.00 (US) per share
includes a warrant in the amount of $1.00 (US) per share.
``The design of the convertible note is based on the belief that the company, after consolidation of our various
businesses, combined with the recent addition of American Vacation Resorts, Inc., will be positioned to replace
the financing with even more debt or equity financing at maturity, based on operating results,'' said travelbyus
CFO Greg Miller.
Terms of the proposed line of credit include a 10 percent interest rate and the requirement for travelbyus to issue
warrants to purchase 4 million of its shares at $0.50 (US), exercisable for five years.
The travelbyus business model was designed not to compete with, but to enhance the capabilities and services of
travel agents who still account for about 90 percent of leisure travel bookings.
travelbyus technological acquisitions include Echo (formerly SiteRabbit), a patent-pending business-to-business
system that provides agent-customized websites with links to the central travelbyus site. The Company also owns
the ERA booking engine, which has significant timeshare and vacation package booking capabilities
Additional important factors that could cause the Company to be unable to realize its plans and objectives are
described under ``Risk Factors'' in the Registration Statement on Form SB-2 of the Company filed with the Securities
and Exchange Commission on November 9, 2000 (Registration No. 333-49658). The disclosure under ``Risk Factors''
in the Registration Statement may be accessed through the Web site maintained by the Securities and Exchange Commission
at ``http://www.sec.gov.'' In addition, the Company will provide, without charge,
a copy of such ``Risk Factors'' disclosure to each stockholder of the Company who requests such information. Please
call Heather Martin at 604-541-2400 to make such request.
SOURCE: travelbyus