Business
Cencotech reports completion of $600,000 debt conversion to common shares
Cencotech reports completion of $600,000 debt conversion to common shares.
About this update from Namsys Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Nov. 8 /CNW/ - Cencotech Inc. (CTZ - TSX-V) today reports the\ncompletion of the conversion of $600,000 in outstanding debt to Common Shares\nof the Company at a price of $0.10 per share with effect October 31st, 2005.\nThe share for debt exchange was undertaken with four creditors; two being\nsecured debt holders and two legal firms. Regular materials creditors have\nbeen maintained satisfactorily by the Company. The four creditors receiving\nshares as set out above are subject to a hold period on the shares issued to\nsatisfy the debt until March 1, 2006. Concurrently, the secured debt of the\nCompany was extended to December 31st, 2006 and the conversion rate on the\n$1,000,000 convertible debenture was adjusted to $0.165 per share from\n$0.33 per share.\nAs previously announced, to allow minority shareholders an opportunity to\nmaintain their pro rata interest in the Company, the Company plans to\nundertake a rights offering of approximately 5,450,000 shares at $0.10 per\nshare. The Company proposes to qualify the rights offering in Ontario, Alberta\nand British Columbia, the three provinces in which Cencotech is a Reporting\nIssuer.\nCompletion of the debt for equity transaction and the successful\ncompletion of the rights offering will significantly improve the Company's\nworking capital position, providing the Company with greater flexibility in\nits pursuit of product sales.\n\nCencotech Inc. was created to acquire and manage emerging high technology\nenterprises with sound business solutions for their customers. The\nCorporation's present products are designed to bring efficiency to the\nprocessing of currency and other value instruments in financial institutions,\nlarge retailers, public transportation operations and the gaming industry.\nCencotech systems are \"open-architectured\" and have been developed to\ninterface with client's legacy systems.\n\nThe TSX Venture Exchange has neither approved nor disapproved of the\ninformation contained in this release. This Media Release may contain forward-\nlooking statements, which reflect the Corporation's current expectations\nregarding future events. The forward-looking statements involve risks and\nuncertainties. Actual events could differ from those projected herein and\ndepend on a number of factors including the success of the Corporation's sales\nst...