SOURCE: Thinkpath Inc.

May 07, 2007 09:00 ET

Thinkpath Reaches Debt Settlement

TORONTO -- (MARKET WIRE) -- May 7, 2007 -- Thinkpath Inc. (OTCBB: THPHF) today announced that it has reached a settlement of its debt obligations to the principal sellers of The Multitech Group Inc., which was acquired by the Company on June 29, 2006.

Pursuant to the settlement, John and Cecelia Kennedy have agreed to return for cancellation all 4,065,820 shares of common stock and 595 shares of preferred stock granted by the Company. In addition, they have agreed to cancel promissory notes in the aggregate amount of $475,788 and accrued interest and penalties. In consideration, the Company has granted the Kennedy's a new promissory note in the amount of $800,000 payable over 5 years in monthly installments of $13,333 beginning January 2008. The new note bears interest at an annual rate of 6%.

Until the new note is paid in full, the Kennedy's shall have the right to nominate one designee to serve on the Company's Board of Directors and the Board will be obligated to include such designee on its form of proxy for its next annual meeting of shareholders.

"We are happy to have reached a settlement with the Kennedy's and look forward to a long and rewarding relationship," said Declan French, Chairman and CEO. "This restructuring is part of our ongoing efforts to improve our working cash flow and capital structure."

ABOUT THINKPATH INC.

Thinkpath is a global provider of engineering solutions. The Company's engineering and design services cover every facet of the project from concept to SLA prototyping to complete turnkey packages that deliver a finished, operating system. Thinkpath engineers handle the drafting, detailing and parametric modeling. They work in diverse engineering disciplines including aeronautical, civil, electrical, environmental, mechanical and structural engineering. For further information about the Company, please visit www.thinkpath.com.

Forward-Looking Statement

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, any statement, express or implied, concerning future events or expectations is a forward-looking statement. Use of words such as "expect," "fully expect," "expected," "appears," "believe," "plan," "anticipate," "would," "goal," "potential," "potentially," "range," "pursuit," "run rate," "stronger," "preliminarily," etc., is intended to identify forward-looking statements that are subject to risks and uncertainties as set forth in our Annual Report on 10-KSB filed Monday, April 17, 2006, particularly those identified in Risk Factors Affecting Our Business. There can be no assurance that any expectation, express or implied, in a forward-looking statement will prove correct or that the contemplated event or result will occur as anticipated.

Contact Information

  • For More Information Please Contact:

    Kelly Hankinson
    Chief Financial Officer
    Thinkpath Inc.
    Tel: 416-622-5200
    Fax: 416-622-5206
    Email: khankinson@thinkpath.com