SOURCE: Avidus Management Group Inc.

Avidus Management Group Inc.

January 23, 2015 08:30 ET

Avidus Announces Closing of Non-Brokered Private Placement and Shares for Debt Transaction

VANCOUVER, BC and MESA, AZ--(Marketwired - Jan 23, 2015) - Avidus Management Group Inc. ("Avidus" or the "Company") (TSX VENTURE: AVD) (OTC PINK: ASNHF) is pleased to announce the closing of the previously announced non-brokered private placement (the "Private Placement") of 12,942,620 common shares of the Company (the "Shares") at a subscription price of $0.05 per Share for gross proceeds of approximately $647,131.00. No finder's fee or commissions were paid in respect of the Private Placement. 

In addition, Avidus announces that it is has entered into a shares for debt agreement with certain creditors whereby Avidus will issue common shares of the Company at a deemed price of $0.10 per share in full and final settlement of the amounts owing to such creditors (the "Settlement Agreements"). Pursuant to the Settlement Agreements up to $1,925,000 would be settled and a total of up to 19,250,000 common shares of the Company would be issued to the creditors subject to the approval of the TSX Venture Exchange (the "Exchange").

All securities issued in connection with the Private Placement and shares for debt transaction will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

Douglas Ridley, Avidus' CEO, commented, "The goal in 2014 was to prove our acquisition model and increase sales and we are very pleased to have achieved those objectives by completing two acquisitions and demonstrating sales growth in each quarter. In addition to continuing those objectives in 2015, we recently turned our attention to making a significant reduction in our liabilities and achieving operating efficiencies. I am pleased to announce that recent agreements have reduced our liabilities by over 70% since the last reported quarter. As well, the soon to be achieved economies of scale resulting from the merger of Asantae and Truestar operations will create in excess of $1M in G&A savings over the balance of 2015. The foundation has been laid for continued sales growth and profitability and we are excited about the year ahead."

Avidus also announces that it has retained FronTier Consulting Ltd., part of the Merchant Capital Group ("FronTier"), to assist the Company in building market awareness in the North American investment community.

FronTier is a Toronto-based investor relations firm founded by its Principal and CEO, Mr. Ari Todd in 2006. FronTier will introduce Avidus to its extensive network of investors and contacts at capital firms and investment funds in Canada and the United States. They will also assist in the dissemination of the Company's news and information to the investment community through various communication channels. Avidus' main point of contact will be FronTier's Director-Issuer Services, Christian Scovenna, who has been involved in the investment industry for over 9-years and spearheaded capital raising, business development and investor relations initiatives for numerous companies.

FronTier has been retained, subject to approval of the Exchange, for a 12-month period at $6,000 per month; Avidus will also grant 200,000 incentive stock options exercisable at a price of $0.05 per share for a period of one year.

On behalf of the Board of Directors of

AVIDUS MANAGEMENT GROUP INC.

"Doug Ridley"

President, CEO, and a director

About Avidus

Avidus Management Group Inc. (TSX VENTURE: AVD) (OTC PINK: ASNHF), based in Mesa, Arizona, develops, acquires and operates growth direct sales and network marketing companies in the consumer health and wellness market. Avidus brands include Asantae (www.asantae.com) and Akea (www.akealife.com) and Truestar Health (http://www.truestar.com).

The Avidus leadership team has a combined experience of 100 years in network marketing and direct selling. For more information, visit www.avidusmanagementgroup.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions, including with respect to the Company's anticipated revenues, profitability and the completion of the Private Placement. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, the Company's ability to develop new products which will receive market acceptance, to receive market acceptance in new markets outside the United States, to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its intellectual property rights. 

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED BY APPLICABLE LAWS.

Contact Information

  • CONTACTS

    Avidus Management Group Inc.
    Doug Ridley
    CEO/President
    10153 E Hampton Ave, Ste 101, Mesa, AZ, 85209 USA
    P: 480-278-8702 / F: 480-383-6147

    Sequoia Partners Inc.
    James Beesley
    Email Contact
    P: 778-389-7715