TSX VENTURE : ZIP
August 07, 2008 07:00 ET
ZipLocal Inc. Completes Final Drawdown on Debt Financing
TORONTO, ONTARIO--(Marketwire - Aug. 7, 2008) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE DISTRIBUTION SERVICES
ZipLocal Inc. ("ZipLocal" or the "Company")(TSX VENTURE:ZIP) has announced that J.L. Albright IV Venture Fund L.P., J.L. Albright IV Venture Parallel Fund L.P. and J.L. Albright IV Venture Parallel II Fund L.P. (collectively, "JLA Ventures") have completed the final $500,000 funding under the Company's previously announced $1 million secured loan from JLA Ventures (see the Company's press releases dated May 18, 2008, July 11, 2008 and July 14, 2008).
Interest on the loan is 12% per year and is payable monthly until maturity on May 19, 2009. The loan is secured against all of the personal property of the Company and supported by a secured guarantee from ZipLocal's subsidiary, Zip411 Enterprises Inc. The Company intends to use the proceeds of the loan as working capital for operating activities.
As previously announced, the loan is a related party transaction under applicable securities laws. John L. Albright, a director and Chairman of the Board of ZipLocal, is the Managing Partner of the general partner of JLA Ventures. In addition, JLA Ventures holds approximately 21.1 million common shares of the Company (representing approximately 26.5% of the outstanding shares of ZipLocal) and is an insider of the Company. The loan is exempt from the formal valuation and shareholder approval requirements to which related party transactions are subject because it represents less than 25% of the Company's capitalization.
The Company has not filed a material change report under applicable securities laws at least 21 days before the advance of the final $500,000 funding under the loan because the Company wished to complete the financing on an expedited basis to secure funds to ensure it will continue to meet its obligations as they become due.
The TSX Venture Exchange granted acceptance of the loan on July 10, 2008.
ZipLocal currently has 79,757,515 common shares issued and outstanding.
About ZipLocal Inc.
ZipLocal Inc. (www.ziplocal.com) (TSX VENTURE:ZIP) is Canada's online directory, providing a rich, user-defined local search experience. Ziplocal provides relevant search results from over 1.3 million businesses with maps and capability for user-generated content. Ziplocal is focused on creating the most comprehensive and engaging search experience at the neighbourhood and city-wide levels.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.