MONTREAL, QUEBEC--(Marketwire - Dec. 3, 2012) - Extenway Solutions Inc. ("Extenway") (TSX VENTURE:EY) announced on October 15, 2012 a proposed private placement of Convertible Debentures (the "Debentures") for a minimum of $ 3 million and a maximum of $ 6 million. Convertible debentures (the "Debentures") of an aggregate principal amount of $3M (the "Offering") were issued on November 30, 2012 (the "Closing Date") to investors pursuant to exemptions under Regulation 45-106 respecting prospectus and registration exemptions. The Company is in discussions with other potential investors and may issue additional Debentures, up to the $ 6 million maximum, in subsequent closings.
"We are very pleased to have completed the first step of this financing in a tough market", said John McAllister, President and CEO of Extenway.
The Debentures are unsecured, will mature on August 31, 2017, bear an annual compounded interest rate of 12% and are convertible into common shares of Extenway (the "Common Shares") at a conversion price of $0.13 if the conversion iseffected no later than at 5:00 pm on April 29, 2016or $0.17 if the conversion is effected thereafter, subject to customary adjustment provisions. The Debentures and all underlying Common Shares are subject to a four-monthplus one-day hold period from the Closing Date, expiring on March 31, 2013, pursuant to securities legislation and the policies of the TSX Venture Exchange.
The proceeds of the Offering will be used for working capital purposes.
IRR Capital Inc., an exempted market dealer, acted as finder for a portion of the financing and received a commission of $105,000 and 250,000 sharepurchase warrants to purchase Common Shares of Extenway at a purchase price of $0.13 per common share if exercised no later than at 5:00 pm on April 29, 2016or at $0.17 per Common Share if exercised thereafter. The share purchase warrants expire on the fifth anniversary of the Closing Date.
One insider participated in the Offeringbysubscribing for Debentures in theamount of $500,000, representing close to 17% of thetotal amount raised through the Offering. The Debentures and all underlying Common shares offered in the Offering have not been nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons, absent such registration or an exemption from registration.
About Extenway Solutions
Extenway Solutions (TSX VENTURE:EY) provides technology solutions to the healthcare sector. Among the services offered by Extenway are interactive televisions, bedside patient terminals, Internet, entertainment, content integration, advertising, education, and integrated solutions. Extenway allows organizations to optimize the way they manage and coordinate interactions in the areas of communications, information and entertainment. For more information, visit www.extenway.com or follow us on Twitter @Extenway.
Disclaimer - Safe Harbour Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements. These forward-looking statements relate to the future financial conditions, results of operations or business of Extenway. These statements may be current expectations and estimates about the markets in which Extenway operates and management's beliefs and assumptions regarding these markets. These statements are subject to important risks and uncertainties which are difficult to predict and assumptions which may prove to be inaccurate. The results or events predicted in forward-looking statements may differ materially from actual results or events. Extenway disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In particular, forward- looking statements do not reflect the potential impact of any merger, acquisitions or other business combinations or divestitures that may be announced or completed after such statements are made.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.