Texada Software Inc. Announces Shares for Debt Transaction, $500,000 in Additional Financing
20 December 2007 - 10:34AM
Marketwired
TORONTO, ONTARIO (TSX VENTURE: TXS). Texada announced today that
it will be seeking to settle aggregate indebtedness in the
approximate amount of $1,281,000 by way of the issuance of
approximately 25.6 million common shares of the Company at a deemed
settlement price of $0.05 per share (the "Shares for Debt
Transaction"). The debt was incurred upon issuance of $1.1 million
principal amount of secured convertible debentures on February 28,
2006, which debentures carry a maturity date of January 31, 2008.
The Company expects to complete the Shares for Debt Transaction on
the maturity date, subject to completion of documentation
acceptable to Texada and the debenture holders.
Texada also announced today a private placement (the "Private
Placement") of units (the "Units") of Texada for gross proceeds of
$500,000. "The proceeds of the Private Placement will be used for
working capital and the continued execution of our sales and
marketing plan." said Nigel Miller, CEO of Texada. "I expect that
the sales growth we experienced 2007 to continue in 2008, with
improved profitability."
It is anticipated that insiders of Texada will be subscribing
for greater than 25% of the Private Placement, on the same terms as
arm's length investors. The Private Placement is expected to close
on or about December 31, 2007, and may close within 21 days of the
date of filing of a material change report in connection with the
closing if management of Texada determines it is reasonable or
necessary in the circumstances.
Each Unit consists of $1,000 principal amount 10% senior secured
convertible debentures (the "Debentures") and 10,000 warrants (the
"Warrants"). The Debentures will mature on November 30, 2009 (the
"Maturity Date") and are convertible at the holder's option into
common shares (the "Common Shares") of Texada at any time prior to
the Maturity Date at a conversion price of $0.05 per Common Share.
Conversion may be forced in certain circumstances. Each Warrant
entitles the holder to acquire one Common Share at any time up to
the Maturity Date at an exercise price of $0.10 per Common
Share.
All securities issued in connection with the Shares for Debt
Transaction and the Private Placement will be subject to a hold
period of four months and one day under applicable securities laws
and TSX Venture Exchange (the "Exchange") rules. The Shares for
Debt Transaction and Private Placement are subject to receipt of
all required regulatory and Exchange approvals.
Texada Software Inc., "Texada," (TSX VENTURE: TXS), announces
CFO Resignation
Texada has accepted the resignation of its CFO, Robert
Beveridge, effective December 21, 2007. "I thank Rob for his
service to the company and wish him well in his future endeavours,"
said Nigel Miller, CEO of Texada. "Rob has committed to assist us
with the year-end audit and transition to the new CFO."
About Texada Software (TSX VENTURE: TXS)
Texada Software Inc. is the premier provider of SYSTEMATIC
enterprise software solutions for mobile equipment and rental
management. Texada's solutions are fully flexible and scalable to
meet the unique needs of any sized operation and are backed by
proven implementation, services and support.
Texada's market-driven software products combine knowledge and
best practices from over 400 customers worldwide, resulting in
solutions that manage the complete asset life-cycle from
acquisition through to disposal. Our customers enjoy the benefits
of enhanced efficiency through better asset utilization, effective
location tracking, and optimized scheduling.
Texada can be reached at 1-800-361-1233, or on the internet at
www.texadasoftware.com. For product and services information visit
www.systematic.com.
This news release may contain forward-looking statements which
reflect the Company's current expectations regarding future events.
The forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate", "plan,
"estimate", "expect", "intend" and statements that an event or
result "may", "will", "should", "could" or "might" occur or be
achieved and other similar expressions. These forward-looking
statements involve risk and uncertainties, including the difficulty
in predicting acceptance of and demands for new products, the
impact of the products and pricing strategies of competitors,
delays in developing and launching new products, fluctuations in
operating results and other risks, any of which could cause
results, performance, or achievements to differ materially from the
results discussed or implied in the forward-looking statements.
Many risks are inherent in the industry; others are more specific
to the Company. Investors should consult Texada's ongoing quarterly
filings for additional information on risks and uncertainties
relating to these forward-looking statements. Investors should not
place undue reliance on any forward-looking statements. Management
assumes no obligation to update or alter any forward-looking
statements whether as a result of new information, further events
or otherwise.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Corporate communications contact: Texada Software Inc.
Anne-Marie Monroe (416) 675-7072 x 215 Email:
amonroe@systematic.com Website: www.texadasoftware.com
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