TORONTO,
Sept. 5, 2013 /CNW Telbec/ - Mitec
Technologies Inc. ("Mitec") has participated in a non-brokered
private placement in Covalon Technologies Inc. ("Covalon", TSX-V:
COV).
Mitec purchased 150 units at $1,000 per unit for an aggregate investment of
$150,000. Each unit consisted
of $1,000 principal amount of 12 per
cent senior secured convertible debenture and 6,451 warrants.
Each debenture is convertible into 6,451 common shares of Covalon
at a conversion price of 15.5 cents
at any time on or prior to the maturity date, which will be three
years from August 30, 2013.
Each warrant will entitle Mitec to acquire one common share of
Covalon at an exercise price of 15.5
cents at any time for a period of three years from
August 30, 2013.
Should Mitec convert the full amount of the
debentures and exercise each warrant, it would result in ownership
of 1,935,484 issued and outstanding shares of Covalon. The
issuance of these additional shares to Mitec, combined with the
shares Mitec currently holds in Covalon, would result in Mitec
holding 2,747,484 of Covalon's common shares on a partially diluted
basis representing approximately 14.6 percent of Covalon's issued
and outstanding shares.
Mitec acquired these units for investment
purposes.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Mitec Technologies Inc.