NEX: GRA.H
MONTREAL, April 30 /CNW/ - In connection with the previously announced proposed reverse take-over transaction or other business combination (the "Transaction") between Graniz Mondal Inc. ("Graniz") (NEX: GRA.H) and DigiScreen Corporation ("DigiScreen") (disclosed in Graniz's press release of April 9, 2009), Graniz has agreed to advance up to $250,000 to DigiScreen as a loan (the "Loan") for the payment of Transaction-related and operational expenses to be incurred by DigiScreen, so as to permit the continued operation of DigiScreen while the parties pursue their discussions with respect to the Transaction.
The parties anticipate executing definitive documents with respect to the Loan, including a loan agreement, after a binding letter of intent with respect to the Transaction is executed. Graniz has already advanced $25,000 to DigiScreen as part of the Loan, but will not advance any additional funds until the TSX Venture Exchange has approved the Loan and the parties have executed definitive documentation. Interest on the Loan will accrue at a rate of 12% per annum. The Loan, plus interest, is to be repaid to Graniz on or before January 30, 2010. The Loan will be secured by a first priority lien on all of the personal property of DigiScreen, and all other secured creditors of DigiScreen are expected to sign a subordination agreement in favour of Graniz (except for a commercial lender that has a security interest in support of approximately $5,000 of credit).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Completion of the Transaction is subject to a number of conditions, including but not limited to TSX Venture Exchange acceptance and disinterested shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Graniz should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed Transaction.
The foregoing information may contain forward-looking statements relating to the future performance of Graniz Mondal Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from Graniz's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by Graniz with the TSX Venture Exchange/NEX and securities regulators. Graniz does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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