Advantex Marketing International Inc.

Advantex Marketing International Inc.

May 13, 2011 20:40 ET

Advantex Completes Second and Final Stage of Debenture Renewal

TORONTO, ONTARIO--(Marketwire - May 13, 2011) - Advantex Marketing International Inc. ("Advantex Marketing" or the "Company") (CNSX:ADX), a leading specialist in merchant funding and loyalty marketing programs, today announced that it has completed the second and final stage of the planned renewal of its Non-Convertible Debentures and Convertible Debentures. The company completed two concurrent private placement of units raising $800,000.

Secured non-convertible debentures of Advantex Marketing in the aggregate principal amount of $790,000 were issued. Such debentures yield 12.0 percent annually, payable semi-annually, and mature on September 30, 2013, and common share purchase warrants of Advantex Marketing carrying the right to acquire in the aggregate 11,179, 290 common shares were also issued Additionally, $10,000 in the aggregate principal amount of secured non-convertible debentures of the Company's subsidiary Advantex Dining Corporation were issued. Such debentures yield 14.0 percent annually, payable quarterly, and mature on September 30, 2013, and common share purchase warrants of Advantex Marketing carrying the right to acquire in the aggregate 19,750 common shares were also issued. Each Advantex Marketing common share purchase warrant entitles the holder thereof to acquire one common share of Advantex Marketing at $0.04 per share for a period ending on September 30, 2013.

The Company will use the proceeds of the two private placements to pay off any outstanding principal or accrued but unpaid interest on its existing Non-Convertible Debentures and Convertible Debentures and for general business purposes.

The Company's Employees, Executive Officers, and a Director purchased 185 units in the aggregate principal amount of $185,000. As the private placement constitutes a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") the Company has relied on the financial hardship exemption from the formal valuation and minority approval requirements of such instrument. The board of directors of the Company unanimously determined that the private placement will improve the financial position of the Company and that the terms of the private placement are reasonable in the circumstances.

Forward-Looking Information

This Press Release contains certain "forward-looking information". All information, other than information comprised of historical fact, that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Such forward-looking information relates to, without limitation, information regarding: the Company's expected use of the proceeds of the two private placements.

Forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, those risks set out in the Company's management's discussion and analysis for its most recently completed interim period including those noted under the headings "General Risks and Uncertainties" and "Economic Dependence", and under the heading "Risks and Uncertainties" in Company's annual information form for its most recently completed financial year, copies of which are available under the Company's profile on SEDAR at

All forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Contact Information

  • Advantex Marketing International Inc.
    Mukesh Sabharwal
    Vice-President and Chief Financial Officer
    905-470-9558 ext. 249