Cell-Loc Location Technologies Inc.

Cell-Loc Location Technologies Inc.

December 08, 2010 18:32 ET

Cell-Loc Renegotiates Debt

CALGARY, ALBERTA--(Marketwire - Dec. 8, 2010) - Cell-Loc Location Technologies Inc. (TSX VENTURE:XCT) reports that it has entered into settlement agreements with its debenture holders. Under the terms of the agreements, each of the four debenture holders will receive fixed monthly payments aggregating $20,000 plus 60% of the proceeds of any new financing obtained by the Company until the principal amount of the debenture is repaid. Unpaid interest which has been accrued to date will not be paid under this arrangement. The Company has agreed to issue 300,000 shares to the debentureholders as part of the settlement agreement.

In addition, the Company has reached agreement with its former CEO, Sheldon Reid, whereby it has established the amount owing to Mr. Reid for deferred salaries and for cash advances made to the Company. The Company and Mr. Reid have executed mutual releases as part of the agreement.

As a result of the agreements discussed above, the Company will reduce its liabilities by approximately $887,000 and will record a gain in that amount on its 2010 financial statements.

By achieving this settlement, the Company has been successful at reducing the outstanding payables and avoiding further legal claims. The payments required under these arrangements are more manageable and allow the Company to continue to move ahead with its business plan.

About Cell-Loc Location Technologies Inc.

Cell-Loc is an intellectual property company that has a proprietary technology designed for deployment of wireless data transmission and location based services. The Company has installed a commercial network in Sao Paulo, Brazil where its technology is being deployed for stolen vehicle recovery services within that network. Cell-Loc is currently in the engineering design and development phase whereby its technology will be deployed for telemetry markets that can be serviced by an existing network or customized as a stand-alone low cost line of sight network application.

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For further information about Cell-Loc and the ongoing technology business, please contact Keith Bohn or Dave Guebert.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.

Contact Information

  • Cell-Loc Location Technologies Inc.
    Keith Bohn
    Interim CEO
    Cell-Loc Location Technologies Inc.
    Dave Guebert
    Vice President Finance & CFO