VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 2, 2013) - Pyng Medical Corp. (TSX VENTURE:PYT) (the "Company") today announced that it has closed its previously announced shares for debt transaction (the "Shares for Debt Transaction") after receiving disinterested shareholder approval of the transaction at a special meeting of shareholders held on July 11, 2013. The closing of the previously announced private placement by Excelera Corporation ("Excelera") has been delayed pending further consideration by the Company's board of directors and by Excelera.
Upon closing of the Shares for Debt Transaction, the Company issued a total of 6,645,080 common shares at a price of $0.09 per common share to MDR Specialty Distribution Corporation ("MDR") of Newport News, Virginia, in satisfaction of debt owing by the Company to MDR in an amount of $598,057.23 (being the equivalent of US$588,118.04, as calculated at the Bank of Canada closing exchange rate on April 26, 2013 of 1.0169 CDN$/US$). Following the completion of the Shares for Debt Transaction, MDR now owns and controls 6,645,080 common shares of the Company, being approximately 28.17% of the 23,587,496 common shares of the Company currently issued and outstanding.
All securities issued in connection with the Shares for Debt Transaction will be subject to a statutory hold period that expires on February 3, 2014.
MDR is a wholly-owned subsidiary of Venuity Corporation ("Venuity"). Excelera, which is also a wholly-owned subsidiary of Venuity and an affiliate of MDR, beneficially owns and has control over 3,000,000 common shares of the Company. Together, MDR and Excelera own 9,645,080 common shares of the Company and 40.89% of the issued and outstanding common shares of the Company. Herbert A. Toms III, a director of the Company owns 80% of the shares of Venuity and David Patrick Long owns the remaining 20% of the shares of Venuity.
Presently, MDR has no intention of acquiring any further securities of the Company. MDR may acquire ownership of or control over further securities of the Company in the future depending upon market circumstances. Such increase in ownership will depend on numerous conditions, including the price of the common shares and general market conditions.
A copy of MDR's Early Warning Report will be available on SEDAR.
More information about the Company is available on SEDAR at www.sedar.com under the Company's profile and on our website: www.pyng.com.
About Pyng Medical Corp.
Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Pyng's expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide.
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.
Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.