VHQ May Buy Maker of Online DVD-Rental Software17 Mar, 2004 By: Brendan Howard
Canada's VHQ has entered into a preliminary agreement to buy the assets of a company that has developed and launched software to rent DVDs online. If the sale is completed, VHQ would become the first major home entertainment retailer to start online rentals in Canada.
The purchase would consist of $120,000 in cash and $360,000 worth of common shares of VHQ at a deemed price of $0.60 per share. In addition, VHQ would pay the company a royalty of 20 percent of the gross revenue generated by the acquired assets through April 30, 2009, with the aggregate amount not to exceed $365,000.
VHQ operates 59 stores in Alberta, Saskatchewan and the Northwest Territories.