Royal Bank and Mediagrif Interactive form E-commerce Joint Venture

On May 24, 2000, Royal Bank of Canada and Mediagrif Interactive Technologies Inc. (Mediagrif) announced that they had entered into a series of agreements relating to the creation of a $20 million joint venture for the building of vertical e-commerce business-to-business marketplaces.

Vertical marketplaces act as Internet-based trading hubs allowing buyers and sellers to identify and locate products, request proposals, issue purchase orders and access industry-specific information. Targeted industries will be announced in the next 12 months.

Royal Bank and Mediagrif will contribute a total of $20 million in cash and technology assets into the joint venture. In addition, Royal Bank is investing $15 million for an estimated 4.9 per cent equity stake in Mediagrif. Mediagrif has plans for an initial public offering scheduled to close later this year.

Royal Bank Senior Counsel Stephen Monty retained Ogilvy Renault lawyers Francis Legault, Solomon Sananes and Lindsay Matthews (securities), Daniel Paul (technology) and Alain Coté (tax). Mediagrif is represented by its Vice-President, Legal and Corporate Affairs, Jean Lesage with assistance from lawyers from the Montreal office of Fasken Martineau DuMoulin LLP including Jacques Rajotte, Pierre-Yves Leduc (corporate) and Stéphane Gilker (technology).


Lindsay Matthews Francis R. Legault Pierre-Yves Leduc Gulu Punia Stéphane Gilker Daniel J. Paul Jacques Rajotte Solomon Sananes James A. Zener