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SAMSys Receives Demand for Payment and Notice of Intention to Enforce a Security
SAMSys Receives Demand for Payment and Notice of Intention to Enforce a Security.
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[{"type":"text","content":"\n\n\n\n\nCompany: SAMSys Technologies Inc.\nStock Symbol: SMY\nListing: TSX\nOutstanding Shares: 51.5 Million\nWeb Site: www.samsys.com\n\nTORONTO, April 7 /CNW/ - SAMSys Technologies Inc. (SMY:TSX) (\"SAMSys\" or\nthe \"Company\"), an international provider of radio frequency identification\n(\"RFID\") hardware solutions, today announced that it has received a Demand for\nPayment dated April 7, 2006 together with a Notice of Intention to Enforce a\nSecurity pursuant to the Bankruptcy and Insolvency Act (the \"Notice\") from the\nholder of its outstanding secured debentures (the \"Debentures\"). As announced\non April 6, 2006, the terms of the agreement between the holder of the\nDebentures, Sirit Inc. (\"Sirit\") and SAMSys include the Company's consent to\nthe appointment of a receiver or an interim receiver for the purpose of\ndisposing of the Company's assets. The Company's consent to the receivership\nconstituted an event of default under the Debentures and also under the\nCompany's outstanding unsecured convertible debentures.\nOn March 28, 2006 SAMSys announced that it had received a notice of\ndefault from the holder of the Debentures which it rejected. At that time, the\nCompany, with the assistance of its financial advisors and the special\ncommittee of the board of directors, was still working to explore strategic\noptions available to SAMSys and therefore had reason to believe that the\nrealizable value of the Company's assets was such that the Company was neither\ninsolvent nor in default under the Debentures. Regrettably, the Company's\ncontinued efforts to effect any potential transaction that could have been\ncompleted in a timely manner in light of the Company's current circumstances\nand that would have allowed SAMSys to continue as a going concern or provide a\nreturn to its shareholders were unsuccessful. The only transaction to\nmaterialize in this context was a sale of the Company's assets to Sirit\nthrough a receivership process as announced on April 6, 2006. Accordingly, it\nbecame apparent that the realizable value of the Company's assets would in\nfact not be sufficient to satisfy all of the Company's obligations. Given the\nCompany's financial circumstances, including, in particular, the rate of its\ncash depletion, in the absence of the immediate completion of the only\ntransaction available, SAMSys'...