Trading Symbol: VPI
VANCOUVER, April 17 /CNW/ - Vitality Products Inc. (the "Company") has entered into a share subscription agreement with Consolidated Firstfund Capital Corp. ("Firstfund") to issue 46,000 Class "A" Preference Shares, Series 6 for share subscriptions received that total $460,000. 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 for a period of five years. The conversion price for the first two years is $0.10 per common share and the conversion price in each of the subsequent three years is 10% higher than the conversion price in the preceding year.
Firstfund is a related company with common directors and common officers and controlled by a common director. William N. Grant, a director and officer of the Company, owns 72.2% of Firstfund. Firstfund made the $460,000 investment through cash advances to the Company to cover the Company's cash requirements from August 2003 to June 2007. These cash advances have been accounted for as shares subscriptions in the Company's audited financial statements and the Company now wishes to complete this private placement transaction. The transaction has been approved by the Company's independent Board members and 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
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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