Biosenta Inc.

Biosenta Inc.

October 02, 2014 16:41 ET

Biosenta Announces Repayment of Bassett Financial Corporation Loan

TORONTO, ONTARIO--(Marketwired - Oct. 2, 2014) - Biosenta Inc. ("Biosenta" or the "Company") listed on the CNSX (CSE:ZRO) is pleased to announce that it has completed the repayment of the $550,000 Bridge Loan announced on March 27, 2014. The 6-month loan was due on September 27 and Biosenta has complied with all of its obligations including making the final payment on the due date.

During the period that the loan was outstanding, Bassett assisted Biosenta to significantly strengthen its financial and corporate strength by:

  • Reducing accounts payable from $2.33 million March 31, 2014 to approximately $420,000 on September 15, 2014;
  • Bringing ownership of the patented technology inside the company thus eliminating a licensing agreement that included payments to insiders;
  • Reducing the shares outstanding by 4.9 million in a share transaction related to the change in ownership of the IP;
  • Securing sales of ZeroMold through two national grocery chains and several smaller regional chains;
  • Constructing a 1/10th scale R&D facility in Parry Sound that will produce commercial quantities of its anti-mold Tri-Filler product to be used in commercial tests in several different product categories by the end of October 2014;
  • Raising an additional $2 million in working capital funds through the issuance of a 6% per annum convertible debenture convertible at 40 cents per share.

"All of these accomplishments represent a significant improvement in the financial foundation of the company and we are pleased to have assisted in this process both with funding and through the efforts of Bassett personnel assisting with day-to-day achievements," said Bassett CEO, Matthew Bassett. "While we are extremely pleased that the loan was repaid in full and on time, we continue to work with the company to ensure that all of its production and sales goals are met in the coming months."

"The financial and management assistance provided by the Bassett team has been remarkable in helping us get our Company back on track for significant future success," says Biosenta Chairman Bruce Lewis. "Not only do we have a much stronger balance sheet, but we are now poised to grow sales of both Zero Mold and Tri-Filler through a multitude of products in Canada, the US, and internationally. And with the repayment of the Bassett loan, our cost of capital has quite literally been cut by over 75%.

Now that the Bassett loan has been fully repaid, the Company is also in the process of removing a General Security Arrangement that was applied to certain assets of the Company by Bassett.

About Biosenta Inc.

Biosenta Inc.'s line of retail anti-microbial products will effectively kill mold, bacteria and fungi on contact and prevent re-growth. These products address the demand created by the mounting health and environmental concerns. Mold can affect the immune system, nervous system, liver, kidneys, blood and can cause brain damage.

On behalf of the Board of Directors of Biosenta Inc.

Bruce Lewis, Chairman

The CSE has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release. Neither the CSE nor its Regulation Services Provider (as such term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

    Bruce Lewis
    1120 Finch Avenue West, Suite 503
    Toronto, Ontario M3J 3H7
    (416) 410 2019

    Investor Relations contact:
    Bassett Financial Corporation
    Matthew Bassett