VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 7, 2016) - Uniserve Communications Corporation (TSX VENTURE:USS) Uniserve Communications Corporation (the "Company") wishes to announce that as part ot the Board of Directors corporate restructuring plan, it has successfully negotiated an amendment to the terms of over $2,500,000 in short-term debt, through the reduction of interest rates, extention of terms, and a write-down of interest and principal amounts. These settlements will reduce the Company's debt service by approximately $85,000 per year and reduce its short-term debt by approximately $1,000,000, thereby strengthening its balance sheet as it gears for significant growth.
The interest rate on a $666,000 loan was reduced by 2% per annum, from 8% to 6% per annum and extended for a one year period to December, 2017. In consideration of the revision to the terms of the loan, the Company has granted the lender a warrant to purchase up to 4 million common shares of the Company on a 1:1 basis at $0.06 per share, for the same one year period, subject to regulatory approval.
The interest rate on a $337,500 loan was reduced by 3% per annum, down to 12% per annum, with all arrears paid, and debt remaining at no more than $250,000 by December 2017.
The interest rate on $413,125 of debenture debt was reduced by 3% per annum from 12% to 9% per annum and extended to March, 2018.
On approximately $1,200,000 in unsecured debt, the Company has negotiated a forgiveness of $300,000 worth of debt owing in consideration of the repayment of $508,262 before year end and an extension on repayment of the balance to December 31, 2017.
The company has also negotiated settlements of some of its outstanding payables, resulting in a further saving of $100,000.
In addition, the Company wishes to announce that, subject to TSX Venture Exchange approval, it will reduce the exercise price on a total of 6.5 million warrants expiring December 2017, from $0.10 per share to $0.06 per share. These 6.5 million warrants were granted pursuant to the Company's 6.5 million share private placement announced November 4, 2015, which closed December 2, 2015. Each warrant will remain exercisable into one common share of the Company upon surrender of one warrant. As permitted by the TSX, the number of warrants available for exercise by insiders is limited to no more than 10% of the total held by insiders.
Uniserve Communications Corporation (TSX VENTURE:USS) is a leader in the integration and delivery of voice and data services over multiple IP networks directly and through wholesale partnerships to businesses and retail consumers throughout western Canada. In the B2B sector, Uniserve also offers services ranging from data storage, automatic file backups, managed service platforms, firewalls, application hosting and guaranteed constant internet connectivity, all backed by Vancouver based technical support. Uniserve currently has over 13,000 active business, residential and wholesale customers combined, providing over 45,000 active services. This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents. Learn more at www.uniserve.com or at www.sedar.com.
Michael C. Scholz, Chairman of the Board
Neither TSX Venture Exchange nor its Regulations Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Management has prepared this release and no regulatory authority has approved or disapproved the information contained herein. The statements contained in this news release that are not historical facts are forward looking statements. Such statements are based on management's estimates, assumptions and projections using available information. Uniserve cautions that actual financial results could differ materially from the current expectations due to a number of factors.