New Debentures
The New Debentures are on the same terms and rank pari passu with the existing
The proceeds of the New Debentures will be used to stabilize Advantex's financial position, fund its Merchant Cash Advance business and for general corporate purposes.
As the New Debentures constitute a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), Advantex relied on the financial hardship exemption from the formal valuation and minority shareholder approval requirements of such instrument. The Board of directors of Advantex unanimously determined that the New Debentures will improve the financial position of Advantex and that its terms are reasonable in the circumstances. There are no prior valuations that have been made in the prior 24 months in respect of Advantex that relates or is otherwise relevant to the close of New Debentures.
The issuance of New Debentures and Common Shares was approved by the Canadian Securities Exchange.
The securities issued are subject to a four-month hold period ending on
After giving effect to this private placement the aggregate amount outstanding of non-convertible debentures (Existing Debentures and New Debentures) is
Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information go to Advantex's profile on www.sedar.com.
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the future business and operations of Advantex. Actual results and developments may differ materially from those contemplated by these statements. The business and operations of Advantex described herein is dependent on a number of factors and is subject to a number of risks and uncertainties. Factors that could cause actual results to differ material include, but are not limited to, changes in Advantex's economic and competitive conditions including but not limited to the industry sectors in which Advantex operates.
The statements in this news release are made of the date of this release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and Advantex undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
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