Cda Firm Seeks Public Backing Netivation.Com Provides Host Of Services For Politicians, Public And Medical Pros

Netivation.com Inc., a Coeur d’Alene company that develops “Internet communities” and provides other services for doctors and politicians, is preparing a public stock offering.

Documents filed with the Securities and Exchange Commission by the 2-year-old company show it wants to raise a minimum of $17.3 million from the sale.

Netivation’s president and CEO is former congressional candidate Tony Paquin, who last year unsuccessfully challenged U.S. Rep. Helen Chenoweth, R-Idaho.

In 1989, Paquin co-founded Agency One Corp., which made software for insurance companies. The company was bought in 1993 by Agency Management Services.

Netivation operates two Web sites.

Votenet (www.votenet.com), offers news and products aimed at politicians, voters and others interested in the legislative process.

The company’s other site, Medinex (www.medinex.com), is designed as an informational tool for doctors and those seeking health news and research.

“The community marketing approach is the idea that the Internet has gotten big enough, and now it’s time to divide into sub-markets,” Paquin said Friday.

Netivation’s prospectus reports the company had revenues last year of $619,000, with a net loss of $3.6 million.

The prospectus also notes Netivation has entered into agreements to purchase two companies, including InterLink Services Inc. of Spokane - a Web design firm. The stock transaction for InterLink will be valued at $1.26 million after Netivation’s public offering closes.

Netivation also is acquiring Online Medical Book store, an East Coast seller of books and other products on the Internet. The stock transaction for Online Medical will be worth more than $2 million.

Aside from community Web sites, Paquin said the company offers various services.

For instance, the company recently started hosting personal Web sites for physicians and also plans to sell business management software to doctors.

Complementing its Votenet page, Netivation hosts about 200 Web sites for politicians and candidates, Paquin said. It also distributes an e-mail newsletter and plans to sell software that will enable politicians to raise money using the Internet. Paquin calls his company’s business model “not just another Web site with a lot of traffic trying to get advertising revenue.”

Paquin said Netivation’s strategy is to tap several revenue sources, including e-commerce, software services and advertising.

He said Netivation’s private stock offering last fall, open only to accredited investors, raised about $5.8 million.

The prospectus reports Netivation has 22 full-time employees. The company’s stock sale is being underwritten by EBI Securities Corp. and the European-based Millennium Financial Group Inc.

It is expected to open at $8 to $10 a share.The company is tentatively slated to offer 2.25 million shares.