EDMONTON,
April 11, 2012 /PRNewswire/ -
Virtual Universe Corporation (the "Company") (TSXV:
VU), announced today that it has entered into an agreement with
1596598 Alberta Ltd. ("1596598") for the Company to provide
1596598 with an Indefeasible Right of Use ("IRU") to its
fibre optic cable assets for term of 15 years. The terms of the
agreement will provide the Company with revenue from its fibre
optic cable assets in the amount of $150,000 per year plus recovery of certain
operating expenses.
In addition, the Company announced that it has
reached agreement with related party debt-holders to restructure
the terms of all interest-bearing related party debts. The
restructuring includes the following terms:
- The related party interest-bearing debt terms will be adjusted
as of January 1, 2011 to reduce the
interest charge to simple interest on the outstanding principal
amounts to 3% per annum;
- There will be a one-time reduction of the outstanding accrued
interest on the advances in the amount of $485,170 as of December
31, 2011;
- The related parties agree not to demand payment of current year
accrued interest until after January 1,
2013;
- $900,000 of the existing debt
principal will be payable on demand; with the remainder of the
outstanding debt to be due on January 1,
2015.
The amended terms for the debt will reduce annual
interest expense for 2011 from $517,700 to
$82,000. Under the proposed new arrangements, annual
interest expense on the debt for the 2012 to 2014 fiscal periods
will continue at $82,000 per annum.
In addition, the agreement will reduce the portion of the
indebtedness that is due on demand to $900,000 until January 1,
2015. Prior to the agreement, the entire amount of the debt
was due on demand.
The Company has two principal areas of interest. It
owns and maintains an IRU in two dark strands of optical fibres in
Alberta, Canada, and has
proprietary technology called Virtual Talker, which allows multiple
participants to engage in real-time verbal conversations over the
internet.
This press release contains certain
"forward-looking statements". These statements relate to future
events or the Company's future performance. All statements other
than statements of historical fact are forward-looking statements.
The use of any of the words "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "should",
"believe", "predict" and "potential" and similar expressions are
intended to identify forward-looking statements. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
These forward-looking statements are made as of the date of this
press release and the Company does not undertake to update any
forward-looking statements that are contained in this press
release, except in accordance with applicable securities laws.
SOURCE Virtual Universe Corporation