Business
Advantex announces debenture financing
Advantex announces debenture financing.
About this update from Advantex Marketing International Inc.
[{"type":"text","content":"\n\n\n\n\nADX: TSX\n\nTORONTO, Oct. 27 /CNW/ - Advantex Marketing International Inc.\n(\"Advantex\") today announces that Notre-Dame Capital Inc. (\"Notre Dame\") and\nTrapeze Capital Corporation (\"Trapeze\") have agreed to act as its exclusive\nagents in offering, on a best efforts private placement basis, a minimum of\n$6,000,000 and up to $6,500,000 principal amount of secured convertible\ndebentures of Advantex (the \"Debentures\"), subject to the negotiation of\ndefinitive transaction documentation and receipt of all necessary regulatory\napprovals (the \"Offering\").\nThe Debentures will bear interest at 10% per year and maturity in April\n2011. Each $1,000 principal amount of Debenture will be convertible, at any\ntime until maturity at the option of the holder thereof and in accordance with\nthe terms of the certificates governing the Debentures, into common shares of\nAdvantex at a price of $0.10 per share.\nAs part of the Offering, the existing convertible debentures of Advantex\nin the principal amount of approximately $3,975,000 will be rolled over into\nthe new Debentures and the additional proceeds of the Offering of between $2.0\nto $2.5 million will be used to fund Advantex's Advance Purchase Marketing\nProgram and for general working capital purposes. Up to 65,000,000 common\nshares of Advantex will be issuable upon due conversion of the Debentures,\nrepresenting a net increase of up to 38,371,796 common shares being issuable\nin addition to the common shares issuable upon conversion of the existing\ndebentures in accordance with their terms. The Offering will not result in a\nchange of control of Advantex since the Debentures will provide that no holder\nacting alone may convert any outstanding principal amount due under the\nDebentures if, after giving effect to such conversion, such holder, directly\nor indirectly, will hold in excess of 19.9% of the issued and outstanding\ncommon shares of Advantex at the time of conversion without first obtaining\nthe approval of shareholders of Advantex by a majority of votes cast at a duly\ncalled shareholders' meeting.\nAdvantex has agreed to pay Trapeze a cash commission of 2.5% of the gross\nproceeds raised under the Offering and to grant Trapeze an aggregate of\n500,000 compensation warrants (each, a \"Compensation Warrant\"). Each\nCompensation Warrant will entitle ...