Ribbon Capital Corp.
TSX VENTURE : RBN

November 13, 2006 15:52 ET

Ribbon Capital Corp. Announces the Shares for Debt Settlement

TORONTO, ONTARIO--(CCNMatthews - Nov. 13, 2006) - Ribbon Capital Corp. (TSX VENTURE:RBN)(the "Corporation" or "Ribbon") is pleased to announce that further to the completion of its qualifying transaction with Integrated Brands Ltd., Local Fone Service Inc. and 1382285 Ontario Ltd. ("SelectComm") originally announced by press releases dated September 7, 2004, November 30, 2004, February 11, 2005, January 12, 2006, May 1, 2006 and October 6, 2006 (the "Qualifying Transaction"), the Corporation has negotiated a share for debt settlement with holders of convertible debentures previously issued by SelectComm (the "Previous Debenture Holders") in the amount of $40,443.97 (the "Settlement").

SelectComm had previously issued convertible debentures for the aggregate principal amount of $750,000 for a term of 12 months with an annual interest rate of 10% (the "Debenture"). As part of the Qualifying Transaction, Ribbon issued an aggregate of 4,999,990 common shares and 2,499,990 common share purchase warrants in connection with the conversion of the principal amount of the Debenture.

The Debenture Holders and the Corporation have now agreed to settle the outstanding accrued interest on the Debenture totaling $40,443.97 through the issuance of 269,606 interest units (the "Interest Units") at the deemed price of $0.15 per an Interest Unit. Each Interest Unit will be comprised of one (1) common share and one-half (1/2) non-transferable common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to acquire one (1) common share at an exercise price of $0.20 per common share for a period of 24 months from the date of issuance. The Settlement is subject to the TSX Venture Exchange approval.

THE TSX VENTURE EXCHANGE INC. HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.

Contact Information

  • Ribbon Capital Corp.
    Peter Burdon
    Chief Financial Officer
    1-800-584-8819 ext. 242
    Email: pburdon@selectcor.com