Business
CON-SPACE Announces Equity Financing
RICHMOND, BC, April 3 /CNW/ - CON-SPACE Communications Ltd. (the "Company" or "CON-SPACE") (TSX-V...
About this update from Canada Carbon, Inc.
[{"type":"text","content":"\n\n\n\nRICHMOND, BC, April 3 /CNW/ - CON-SPACE Communications Ltd. (the\n"Company" or "CON-SPACE") (TSX-V: CCB), (http://www.con-space.com), today\nannounced that it is proceeding with a private placement of 22,000,000 common\nshares at $0.05 each, for gross proceeds of $1,100,000, to Turret Oy Ab\n("Turret"), its largest shareholder and secured lender. Completion of the\nprivate placement is subject to regulatory approval and is subject to\ncompletion of a proposed restructuring to address the Company's current\nserious financial difficulties. The restructuring is to include certain\nagreements with its bank to maintain its current credit facilities and,\nsettlement and payout of security held by the vendors of Search Systems Inc.\n(the "SSI Vendors").\n\n\nThe Company has a secured loan agreement with Turret (the "Turret\nAgreement"), securing a principal balance of CDN$4,900,000, which is currently\nin default including with respect to the failure to pay the quarterly interest\npayment due March 31, 2009. Turret has made a second $50,000 interim loan to\nthe Company as a further advance under the Turret Agreement, pending\ncompletion of the private placement. Proceeds of the private placement are to\nbe utilized to pay out the SSI Vendors, repay Turret the two $50,000 bridge\nloans and pay the overdue interest, with the balance for general working\ncapital and costs associated with the financing and restructuring.\n\n\nTurret currently holds 11,528,609 shares of the Company, representing\n46.5% of the outstanding shares, and on completion of the private placement\nwill hold 33,528,609 shares, representing 71.6% of the outstanding shares. As\nwell, Turret holds warrants exercisable for 675,000 shares and holds\nconversion rights with respect to $4,800,000 of the principal amount owing\nunder the Turret Agreement, as more particularly described in the Company's\nnews release of November 6, 2008. The conversion rights would be exercisable\nfor a maximum of 13,750,000 common shares and if default conversion rates are\napplicable, the conversion rights would be exercisable for a maximum of\n32,000,000 common shares.\n\n\nGordon Cook, the Company's President and CEO, said, "This transaction is\na necessary step toward resolving the burden of a debt load and capital\nstructure ...