Trailmobile Canada Ltd intends to proceed with a rights offering to its shareholders. Under terms of the offering, shareholders of record Aug 10, 2001, will be entitled to one right for each common share held. Four rights will entitle the rights holder to subscribe for one common share at a subscription price of $0.09 per share. After full exercise of rights, 11,236,000 common shares will be issued for gross proceeds of $1,011,240.
Net proceeds of the offering will be used primarily to pay outstanding accounts payable and reduce the company's operating line of credit with the balance to be used for working capital.