Medbroadcast Corporation, the creator and publisher of medbroadcast.com, the largest consumer-oriented medical website in Canada, and Global Communications Ltd., a wholly-owned subsidiary of CanWest Global Communications Corp., announced on August 31, 2000 that they have completed a transaction by which Global Communications will invest $20 million over three years in Medbroadcast Corporation. Global will initially acquire a 20 per cent stake in Medbroadcast, with share purchase warrants allowing Global to increase its position.
The alliance allows Medbroadcast Corporation access to the content distribution channels, consumer traffic and advertising sales strength of the Global Television Network and the Canadian Internet assets of Hollinger Inc., including canada.com as well as its Canadian metropolitan newspapers, magazines and most community newspapers.
Media counsel to the issuer were Peter E. Steinmetz, Q.C., with assistance from Larry Weinberg, Jordan Jacobs and David Kerr of Cassels Brock & Blackwell LLP. Securities counsel to the issuer was Charlotte Bell of Catalyst Corporate Finance Lawyers of Vancouver, BC. Counsel to Global were Torys with Kevin Morris and Nicole Rosenberg acting with assistance from Michael Pickersgill.