ADX Advantex Marketing International Inc

Advantex Marketing International Inc.  (CNSX:ADX) ("Advantex" or the "Company"),
a leading specialist in marketing services industry, today announced that it has
completed its planned refinancing (the "Refinancing"). The Company sold, by way
of private placement, 5,159 units (each a "Unit"), at $1,000 per Unit, comprised
of (i) $1,000 face value secured non-convertible debentures of Advantex (the
"New Debentures") bearing interest at 12% per annum and maturing on September
30, 2016 and (ii) 8,150 common shares in the capital of the Company. The amount
refinanced was $5.2 million. 


"This refinancing will have a positive impact on shareholder value because we
significantly reduced debt and the number of common shares on a fully diluted
basis. The Company's existing debentures of $7.9 million consisting of two
separate tranches of debentures ($6.2 million and $1.7 million) with 90.5
million common share warrants of the Company has been consolidated into one
facility of $5.2 million. The Company will benefit from a decrease in its future
annual interest cost. The restructuring of the debentures has reduced the fully
diluted common shares from 197.9 million to 149.5 million, a reduction of 48.4
million common shares," said Kelly Ambrose, Advantex President and Chief
Executive Officer. 


The Company has used the proceeds of the private placement plus cash on hand to
pay off the outstanding principal and accrued interest on $7.9 million of
principal amount of its 12% non-convertible debentures and the 14%
non-convertible debentures of its subsidiary (collectively, the "Existing
Debentures"). In connection with the refinancing, the holders of the Existing
Debentures that have been repaid have agreed to surrender to the Company the
warrants issued in connection with such Existing Debentures. Any Existing
Debentures not exchanged for New Debentures will mature in accordance with its
terms (as amended) on December 31, 2013 and any warrants issued in connection
therewith, unless exercised, will expire on December 31, 2013. 


The Units were purchased by Trapeze Capital Corp. and Trapeze Asset Management
Inc., on behalf of their respective managed accounts, the Company's employees,
executive officers and directors, and private investors. 


As the Refinancing may constitute a related party transaction pursuant to
Multilateral Instrument 61-101 - Protection of Minority Security Holders in
Special Transactions, Advantex intends to rely on the financial hardship
exemption from the minority approval requirement of such instrument. The board
has commissioned a fairness opinion in respect of the Refinancing. In reliance
on the fairness opinion and such other matters as it has determined are
appropriate, the board of directors of the Company unanimously determined that
the Refinancing will improve the financial position of Advantex and that the
terms of the Refinancing are reasonable in the circumstances.


About Advantex Marketing International Inc. 

Advantex is a specialist in the marketing services industry. Advantex partners
with CIBC and Aeroplan. On a combined basis, Advantex has contractual marketing
access to more than five million Canadian consumers with above-average personal
and household income. Advantex's merchant partner base currently consists of
about 2,000 merchants operating restaurants; golf courses; independent inns,
resorts and selected hotels; spas; retailers of men's and ladies fashion,
footwear and accessories; retailers of sporting goods; florists and garden
centres; book and newspaper stores; health and beauty centres; dry cleaners;
gift stores; home decor; automotive dealers, service centers; and tire
dealerships; many of which are leaders in their respective categories. 


Advantex is traded on the Canadian National Stock Exchange under the symbol
"ADX". For additional information on Advantex, please visit www.advantex.com.


Forward-Looking Information 

This news release contains "forward-looking statements" within the meaning of
applicable securities laws relating to the future business and operations of
Advantex, including relating to Company's repayment of Existing Debentures and
the impact on shareholder value. Readers are cautioned not to place undue
reliance on forward-looking statements. Actual results and developments may
differ materially from those contemplated by these statements. The business and
operations of Advantex described herein is dependent on a number of factors and
is subject to a number of risks and uncertainties. Factors that could cause
actual results to differ materially include, but are not limited to, changes in
Advantex's business including its on-going business and contractual
relationships as well as general business, economic and competitive conditions
relating to the industry sectors in which Advantex operates.


The statements in this news release are made as of the date of this release.
Forward-looking statements are made based on management's beliefs, estimates and
opinions on the date the statements are made and Advantex undertakes no
obligation to update forward-looking statements if these beliefs, estimates and
opinions or other circumstances should change, except as required by applicable
law. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Advantex Marketing International Inc.
Mukesh Sabharwal
Vice-President and Chief Financial Officer
905-470-9558 ext. 249
Mukesh.Sabharwal@advantex.com
www.advantex.com

Advantex Marketing (CSE:ADX)
Historical Stock Chart
Von Apr 2024 bis Mai 2024

Advantex Marketing (CSE:ADX)
Historical Stock Chart
Von Mai 2023 bis Mai 2024