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YANGAROO Announces Sweeping Plan to Reduce Debt, Consolidate Shares, and Raise Capital to Expand; Current Debt to be amended and reduced with committed support of majority of debt holders
(via Thenewswire.ca) TORONTO, CANADA - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the indus...
About this update from Yangaroo Inc.
[{"type":"text","content":"YANGAROO Announces Sweeping Plan to Reduce Debt, Consolidate Shares, and Raise Capital to Expand; Current Debt to be amended and reduced with committed support of majority of debt holders(via Thenewswire.ca)\n\n \nTORONTO, CANADA - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media management company (the \"Company\"), is pleased to announce its strategic plan, which includes raising capital to accelerate growth, reducing the debt to deleverage the balance sheet, improving the terms of the residual debt, and proceeding with the previously approved share consolidation.\n\n\n \n\"We have undertaken an exhaustive process to assess the multiple scenarios for YANGAROO's financial structure going forward,\" said Gary Moss, President and CEO. \"We have heard consistently, from both current and prospective stakeholders, that our balance sheet is an impediment to capitalizing on growth opportunities, as well as maximizing value for shareholders. We have consulted with many independent advisors and the consensus has been universal - raise sufficient working capital to exploit growth opportunities, reduce debt levels and reduce the number of outstanding shares. The process to achieve this is complicated, but achieves the objectives set. The process requires the support of our shareholders and debenture holders and we are very pleased that preliminary discussions with many of these stakeholders have been positive. Based on these discussions, we expect to receive the necessary approvals at our upcoming AGM. I want to thank everyone who has assisted us in this process so far,\" added Moss. \"We look forward to focusing on growing YANGAROO, with a capital structure and balance sheet that will maximize value creation for all stakeholders.\"\n\n\n \nThe Board of Directors has authorized the following plan and each transaction thereunder as described in detail below:\n\n\n \nSubject to regulatory approvals, a brokered private placement (the \"Private Placement\") to raise a minimum of $750,000 (the \"Minimum Amount\") and up to $1,250,000 through the issuance of a minimum of 3,000,000 and up to 5,000,000 subscription receipts (\"Subscription Receipts\") at a price of $0.25, based on the post-consolidation share price, per Subscription Receipt (the \"Subscription Price\"). \n\n\n \nEach Subscription Receipt represe...