Business
BSM Announces Convertible Debenture Financing
BSM Announces Convertible Debenture Financing
About this update from Great Plains Metals Corp.
[{"type":"text","content":"BSM Announces Convertible Debenture Financing\n\n\n\nBSM Announces Convertible Debenture Financing\n\nMississauga, Ontario CANADA, June 10, 2008 /FSC/ - BSM Technologies Inc. (GPS - TSX Venture), (\"BSM\" or the \"Company\") (http://www.bsmtechnologies.com), a leading provider of high security vehicle tracking and surveillance solutions, proposes to issue a minimum of $1,000,000 and up to $3,100,000 in convertible debentures (the \"New Debentures\") and amend the terms of $800,000 (\"Reconstituted Debentures\") of the $1,300,000 outstanding debentures (the \"Outstanding Debentures\"). \n\nThe holders of the Outstanding Debentures, BSM and Nick Cirella (the \"Parties\") have entered into a Master Agreement which includes the terms of the New Debentures and Reconstituted Debentures (collectively the \"Financing\"). Upon closing of the Financing, Nick Cirella will retire as C.E.O. and Aly Rahemtulla is expected to be appointed as C.E.O. Mr. Cirella will continue as a director and will have an advisory role to the new C.E.O.\n\nAly Rahemtulla stated that, \"I would like to thank the existing Board of Directors and Nick Cirella for their efforts in building the business of BSM and I look forward to undertaking this role and developing the Financing into a great success for BSM.\" Nick Cirella commented \"I have full confidence in Aly and his ability to take BSM to the next level.\" \n\nThe New Debentures will have a term of two (2) years and are convertible into common shares of the Company at the rate of one common share for each $0.06 of debt converted. The Convertible Debentures will be secured against the assets and undertaking of the Company (including security over all subsidiaries of the Company) and will bear interest at the rate of 14% per year. The subscribers will receive warrants to acquire common shares of the Company equal in number to the number of common shares convertible upon exercise of the conversion feature of the New Debentures. Each Warrant will be exercisable at $0.10 to acquire a further common share for two (2) years from closing. The Company anticipates closing on $2,650,000 of New Debentures within one (1) week, with $1,750,000 already committed for the Financing. $500,000 of the funds from the New Debentures will be used to repay $500,000 of the Outstanding Debentures with...