Family Memorials Inc.
TSX VENTURE : FAM

Family Memorials Inc.

July 20, 2017 12:31 ET

Family Memorials Inc. Announces It Did Not Repay 15% Debentures On Maturity Date

THUNDER BAY, ONTARIO--(Marketwired - July 20, 2017) - Family Memorials Inc. (TSX VENTURE:FAM) ("Family Memorials" or the "Corporation") announces the following with respect to its 15% Convertible Secured Debentures (the "Debentures"), with a Maturity Date of March 31, 2017 issued pursuant to a Debenture Indenture dated July 7, 2011 entered into with Computershare Trust Company of Canada (the "Debenture Trustee"), as amended pursuant to the First Supplemental Debenture Indenture dated October 31, 2013, the Second Supplemental Debenture Indenture dated June 10, 2016 and the Third Supplemental Debenture Indenture dated December 14, 2016 (collectively called the "Debenture Indenture"):

  • the Debentures are secured by all of the assets of the Corporation and its subsidiaries;
  • the Corporation issued a news release on December 14, 2016 announcing that the Maturity Date was changed from December 15, 2016 to March 31, 2017;
  • due to lack of sufficient funds, the Corporation failed to deposit with the Debenture Trustee such sums of money required for payment of the principal amount of the Debentures and accrued interest, and accordingly the principal and interest was not paid on the Maturity Date, as required under the Debenture Indenture;
  • the amount of the funds required to be deposited by the Corporation with the Debenture Trustee to fully pay the principal and accrued interest of the Debentures on the Maturity Date was $5,864,577.26
  • in late March, 2017, as the Corporation was taking steps to raise the funds referred to above, the Corporation became aware that it would not have the full amount of the funds to deposit with the Debenture Trustee;
  • on April 26, 2017 and May 16, 2017 the Corporation deposited the amount of $820,533.77 and $77,508.95, respectively, with the Debenture Trustee, which funds represented proceeds from the sale of the operating assets of some of the Corporation's subsidiaries;
  • the Corporation is currently negotiating the terms of a secured loan to be obtained for the purpose of settling payment of the Debentures and once the terms of the loan have been finalized, a further press release will be issued.

This news release and the material change report that will be filed, are being filed at the request of the Ontario Securities Commission.

About Family Memorials

The Corporation is a Canadian public corporation operating in the death care industry retailing monuments and memorials with agency and sales agreements with funeral homes. The Corporation currently trades on the TSX Venture Exchange under the symbol "FAM".

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.

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