Business
Quantum Yield reports support for Pulse Data offer
Quantum Yield reports support for Pulse Data offer.
About this update from Decimus Oil Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, June 22 /CNW/ - Quantum Yield Inc. ("Quantum") reports today\nthat since announcing its offer on June 19, 2007 to acquire all of the issued\nand outstanding common shares ("Pulse Shares") of Pulse Data Inc. ("Pulse")\n(TSX: PSD), the company has received significant interest in the offer.\n\n\n"In the numerous calls from analysts, institutional investors and retail\nshareholders, a common theme prevails," said Jim Durward, President of\nQuantum. "Change is desired but people want to fully understand the terms and\nconditions of the Debentures as well as the future upside participation," he\nsaid.\n\n\nWhile the terms and conditions of the Debentures are generally set forth\nin Quantum's Offer and Circular dated June 19, 2007 (the "Circular"), Quantum\nsummarizes such information as follows:\n\n\nSecurity. Pulse shareholders should be aware that the same assets that\ncurrently provide value for their Pulse Shares (i.e. the seismic databases,\nthe internal data storage and delivery systems, Terrapoint, and all other\nassets of Pulse) (the "Assets") will also provide the value and security for\nthe Debentures after the amalgamation of Pulse and Quantum (the\n"Amalgamation"). After the Amalgamation, the Debentures will have a direct\nsecurity charge on all of the Assets, which will then include Quantum's\nLeadScan license, and will rank ahead of the holders of common equity. In\nother words, Debentureholders will be paid out prior to holders of common\nequity. Holders of Pulse Shares currently do not have such security.\n\n\nInterest Payments. The interest payments on the Debentures are\ncontractual and must be paid quarterly when Free Cash Flow (defined in the\nDefinitions section of the Circular as the remainder of the amalgamated\nentity's operating income after paying operating expenses, general and\nadministrative costs, bank or priority lender interest expense, seismic\nparticipation program costs and income taxes) is available. The terms of the\nDebentures also provide that if any interest has been accrued due to lack of\nFree Cash Flow, and not paid, then the amalgamated entity will not be able to\nuse company funds to pay for participation programs. This essentially means\nthat the interest payments are secured by a direct charg...