Basis100 Issues Debentures, Restructures and Completes Issuer Bid

U.S.-based Basis100 Inc., a business solutions provider, completed, on December 3, 2002, a private placement of $7 million debentures and 6,730,768 special warrants, each exercisable for two years for a common share for $0.52. Yorkton Securities Inc., now Orion Securities Inc., acted as financial advisor on the transaction.

Basis100 proceeded to restructure, which included the March 6, 2003 sale of its EFA group assets to Computershare Investor Sevices Inc. for $6.25 million, the April 11, 2002 sale of its ownership interest in CanDeal.ca Inc. to that company, on undisclosed terms, and the June 19, 2003 sale of all the assets of its Canadian lending solutions business to FiLogix Inc. for 16.6 million.

Basis100 then, on September 8, 2003, completed a partial substantial issuer bid underan offering circular dated July 31, acquiring $5 million of its $20 million outstanding principal amount of 6 per cent convertible unsecured debebtures. The transaction resulted in the first substantial issuer bid to acquire TSX-listed debentures that were totally book-based, with a single, global debenture certificate being held by CDS & Co. Griffiths McBurney & Partners acted as financial advisor.

Basis100 was represented by Fraser Milner Casgrain LLP, with a team that included Victor Hum, Dan Dowdall, Heather Zordel, Ken Chun and Don Luck. The debenture purchasers were represented by Neill May, Bram Atlin and Richard Warren of Goodmans LLP.

Computershare was represented by Kathleen Ward and Richard Brait of Stikeman Elliott LLP. FiLogix was represented by Mark Surchin, Jeffery Singer and Grant McGlaughlin of Goodmans.

Griffiths McBurney & Partners was represented by Rob Wortzman of Wildeboer Rand Thomson Apps & Dellelce, LLP in Toronto.

Lawyer(s)

Y. Ken Chun Grant E. McGlaughlin Jeffrey Singer Richard L. Warren Mark Surchin Heather Zordel Robert D. Wortzman Daniel R. Dowdall Bram Atlin Neill I. May Richard A. Brait Kathleen G. Ward Donald F. Luck