ADX: TSX
TORONTO, Nov. 10 /CNW/ - Advantex Marketing International Inc.
("Advantex" or the "Company") announces the first closing of its $6 million
private placement debenture financing, as previously announced in the
Company's News Release dated October 27, 2006 (the "Offering"). Notre-Dame
Capital Inc. ("Notre Dame") and Trapeze Capital Corporation ("Trapeze") acted
as the Company's exclusive agents in raising an aggregate of $5,685,000
principal amount of secured convertible debentures of Advantex (the
"Debentures") pursuant to the Offering. Subscriptions for an additional
$315,000 principal amount of Debentures are expected to be received within the
next week, for aggregate gross proceeds of $6 million being raised pursuant to
the Offering.
The Debentures bear interest at 10% per year and mature on December 9,
2011. Each $1,000 principal amount of Debenture is convertible, at any time
until maturity at the option of the holder thereof and in accordance with the
terms of the certificates governing the Debentures, into common shares of
Advantex at a price of $0.10 per share.
As part of the Offering, the existing convertible debentures of Advantex
in the principal amount of $3,975,000 were rolled over into the new Debentures
and the additional gross proceeds of the Offering of $2,025,000 will be used
to fund Advantex's Advance Purchase Marketing Program and for general working
capital purposes.
Advantex paid Trapeze a cash commission of $142,125 and granted Trapeze
an aggregate of 500,000 compensation warrants (each, a "Compensation
Warrant"). Each Compensation Warrant entitles the holder thereof to acquire
one common share of Advantex at $0.10 until November 9, 2008.
About Advantex Marketing International Inc.
Advantex Marketing International Inc. is a leading marketing services
company, specializing in Advance Purchase Marketing Programs for merchants,
coalition loyalty rewards programs, and Online Shopping Malls. Advantex
loyalty partners include CIBC, United Airlines, Delta Air Lines, The New York
Times, and other major corporations, as well as a growing list of restaurants,
retailers, golf courses, small inns and resorts. Advantex is a public company,
traded on the Toronto Stock Exchange under the symbol "ADX". For additional
information on Advantex, please visit www.advantex.com.
This press release includes statements about Company expectations that
are forward-looking in nature and subject to risks and uncertainties. Advantex
cautions that actual performance will be affected by a number of factors, many
of which are beyond its control. Discussion of the various factors that may
affect future results is contained in Advantex's recent filings with Canadian
securities regulatory authorities.
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