Games Trader Sold

Xencet Investments Inc. announced today that it plans to acquire all the outstanding shares of Games Trader Inc., which is a supplier of previously played Nintendo, Sony, and Sega video games to retail outlets in the US and Canada.

The GTI shares will be traded for 10,300,000 common shares of Xencet and 1,904,783 of the company's series A common share purchase warrants. Each of those shares of warrants will also "entitle the holder to acquire one common share of Xencet for US$1.50 at any time on or prior to the second anniversary of the closing of the acquisition."

"The previously played video game market is very large, although perhaps not readily understood by those who don't play the games," said Peter Kozicz, GTI president and CEO. His company was founded in the early 1990s; during its last fiscal year (which ended March 31, 1998) the company had $28.7 million in sales. GTI takes used (or as it like to call them "previously played") video games, then refurbishes and repackages them for distribution in US and Canadian retail outlets.

The acquisition is subject to shareholder and regulatory approval.