Global-e Investments explained

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New comer to the New Zealand market, Global-e, outlines what the company and its product is about.

Tuesday, March 7th 2000, 12:00AM

by Philip Macalister

Global-e Investments Ltd is a New Zealand based company, positioned to become a global leader in Internet finance and e-Commerce.

Since our incorporation in 1997, we have enlisted an international team of advisors, board members and employees including investment and e-Commerce industry leaders from Wall Street, Asia and New Zealand

Our Global-e Bond series, is establishing a unique global e-community for investors.

Global-e has pioneered a method of utilising a long-term bond structure to provide leverage to its bondholders through e-Commerce. Each bondholder will have three distinct ways they can realise returns through this structure:

1. Assured capital return in 20 years
2. Each bondholder has an option to acquire 300 shares in Global-e Investments, the e-Commerce company issuing the bonds
3. Leverage the purchasing power of the eCommerce Private Community

And, each bondholder can potentially win from US$10,000 to US$10 million through daily prize draws held live on Global-e's Private bondholder website every day.

To summarise:

• The prize draws will promote the sale of the bonds and ensure the continued use of Global-e’s website.
• The prizes will attract visits to the website;
• The visits to the website will give value to the e-Commerce business and,
• The increasing value of the e-Commerce business will drive the value of the shares.

It is a simple formula for success.

Global-e Bonds

• Global-e Bonds are secured under a Trust Deed.
• To assure the repayment of the face value of each bond, Global –e is setting aside a percentage of the subscription money in a special Repayment Assurance Fund. The assets of this fund will be US Government and treasury stock and the assets will be charged in favour of TOWER Trust, as trustee for the Bondholders.
• One million bearer bonds will be offered internationally in the first series at a discounted price of US$1060 and with a face value of US$1200.

When an investor purchases a bond they get an option to acquire 300 shares in Global-e Investments. The price to exercise the option will be US$0.05 per share (US$15 in total). The option must be exercised between 1 August 2002 and 31 October 2002.

Given the nature of the business, the shares have the potential to be worth significantly more than this in the future. According to the New Zealand Herald dated 15 February 2000, in 1999 Internet IPOs created $702 billion in equity value, boosting the web’s total stock market value to $1.32 trillion. The average gain was 253% but over 500 ballooned more than 1000%.

The Global-e Private Community

All Bondholders will have member-only access to our web site – The Global-e Private Community.

Being part of the Global-e Private Community offers a number of key benefits:

• Bondholders will be provided with the ability to make Global-e their home page and private portal thus ensuring their name and personal details will never be sold to advertisers.
• Bondholders will be provided with the ability to set up an account with Global-e in order to purchase quality services and products without the risk of credit card fraud.
• Global-e will provide a selection service to help bondholders successfully navigate the Internet, saving them time and money.
• Bondholders can take advantage of the leverage their purchasing power represents – a relatively small saving on a substantial purchase can be a significant indirect return on the Bond

Global-e will be seeking advice from bondholders about their interests and the content they would like to see on the site, which will help to develop these customised services for bondholders.

Minimum Subscription Amount

The minimum subscription amount is 25,000 bonds. Bonds are not issued until 25,000 have been sold. All funds received prior to this are held in trust with TOWER Trust until either 25,000 bonds are sold or until 7 July 2000 when Global-e will refund all money in the unlikely event that 25,000 bonds have not been sold.

Payment Options

Investors have three options to pay in US dollars:

Bank draft

Telegraphic transfer

Credit card

Custodial Service

TOWER Trust will provide a custodial service for bondholders if they wish to keep their bond in a safe place

The Prize Draws

It is simple to qualify…

• If investors buy one of the first 25,000 bonds issued they will be in the initial draw for US$500,000
• Every day thereafter, each bondholder will participate in a draw for US$10,000 per day until the series closes - i.e. 1 million bonds are sold. So the earlier an investor buys, the more drawings they participate in and the better their chances are of winning
• Once the series closes prize draws will be held every day for 20 years for the following amounts:
• US$50,000 a day
• US$1 million a month
• US$10 million once a year
• This totals over 7,300 prize draws in US Dollars over 20 years providing each bondholder with an excellent chance of winning a prize.

The draws will be held live on the Internet at 6am New Zealand time, which will encourage large volumes of Bondholders to the web site, thereby helping to build a profitable e-Commerce company. Investors will be issued with a special access number, which will gain them entry to view the daily draws on web site.

The draws will start when 25,000 bonds have been sold and this will be no later than 7 July 2000.

Winners are selected at random through an electronic "Random Number Generator" system, known at Global-e as "Ranger". TOWER Trust will verify the validity of the prize draws.

How to Apply

You can apply either on the application form at the back of the Investment Statement or on the web site – www.global-ebonds.com. To receive an Investment Statement, talk to your financial adviser or call Global-e on 0800 289 326.

Summary

By becoming a Global-e bondholder, investors will enjoy one of the most secure investments in the world and have the chance to win large daily cash prizes. They will receive an option for 300 shares in Global-e Investments, an assured investment return, exclusive access to special pricing and the ability to purchase goods and services over the Internet in a safe and confidential environment where every visit to the website adds to the capital growth of their investment.

This article was supplied by Global-e.

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