Trading Symbol: VPI
VANCOUVER, Dec. 6 /CNW/ -
Vitality Cancels Private Placement
Vitality Products Inc. (the "Company") wishes to announce the cancellation of the non-brokered private placement of up to 5 million units of the Company at a subscription price of $0.60 per unit for gross proceeds of up to $3 million announced in the Company's November 7, 2007 Press Release due to market conditions.
Vitality will be entering into Shares for Debt Settlement
Due to the cancellation of the private placement, the Company will be entering into shares for debt settlement to settle aggregate indebtedness in the amount of $460,000 by way of the issuance of 2.3 million common shares of the Company at a deemed settlement price of $0.20 per share, subject to regulatory approval.
Vitality to Issue Preference Shares, Series 6 to Replace Preference
Shares, Series 3
Due to the cancellation of the private placement, the Company will be entering into agreements with holders of the Company's Class "A" Preference Shares, Series 3 to issue Class "A" Preference Shares, Series 6 in exchange for the outstanding Class "A" Preference Shares, Series 3 plus all unpaid dividends accrued thereon to the date of the exchange. The Class "A" Preference Shares, Series 6 with a par value of $10 each in the capital stock of the Company will each be non-voting and have a 6% cumulative dividend payable annually. The Class "A" Preference Shares, Series 6 plus all unpaid dividends accrued thereon will be convertible to common shares in the capital stock of the Company at $0.25 per common share for a period of 5 years. The transaction is subject to regulatory approval.
On behalf of the Board of
VITALITY PRODUCTS INC.
"William N. Grant" (signed)
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William N. Grant, President & CEO
Tel: (604) 683-6611
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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