VICTORIA, BRITISH COLUMBIA--(Marketwire - July 16, 2010) - Vigil Health Solutions Inc. (TSX VENTURE:VGL)("Vigil") today announced that it has entered into an aggregate $200,000 loan agreement with British Columbia Discovery Fund (VCC) Inc. and GrowthPoint Capital Corp. The loan is secured by all of Vigil's property and is due and payable on December 31, 2010. The loan is convertible at the option of the lenders into Vigil's common shares at a rate of one common share for each $0.10 of indebtedness ($0.20 if Vigil's proposed consolidation announced below occurs). Any common shares issued on conversion of the loan will be subject to a four month hold period from today's date. The obligations of Vigil and the lenders under the loan agreement are conditional upon receipt of acceptance by the TSX Venture Exchange of the loan.
Vigil will seek shareholder approval at its Annual General and Special Meeting of shareholders to be held on August 24, 2010, to consolidate its common shares at a ratio of one new share for each twenty outstanding common shares. In order to be effective, the consolidation resolution must be approved by at least three-quarters of the shareholder votes cast at the meeting and be accepted by the TSX Venture Exchange. The purpose of the share consolidation is to facilitate future financings and strategic initiatives by Vigil. Vigil currently has 100,046,135 common shares outstanding. If the consolidation is approved, Vigil will have approximately 5,002,306 common shares outstanding. Vigil's name will not be changed in connection with the proposed consolidation.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.