Advantex Announces Business Update
TORONTO, Feb. 22, 2024 /CNW/ - Advantex Marketing International Inc. (CSE: ADX) ("Advantex"), a leader in the merchant cash advance and loyalty marketing products for merchants, is pleased to announce that it has closed its private placement of a secured non-convertible debenture for gross proceeds of $300,000 to an arm's length party (the "New Debenture").
The New Debenture bears interest at 12% per annum payable semi annually, matures on October 10, 2025 and ranks pari passu on security with the existing senior secured non-convertible debentures in the aggregate principal amount of $7,759,000 which bear interest at 9% per annum and mature on December 31, 2025, and an existing secured non-convertible debenture in the principal amount of $400,000 which bears interest at 12% per annum and matures October 10, 2025. There was no issuance of common shares of Advantex to the holder of the New Debenture. Advantex secured the requisite approval of holders of the senior secured non-convertible debentures prior to issuing the New Debenture.
The proceeds of the New Debenture will be used to continue to stabilize Advantex's financial position, fund its merchant cash advance business and for general corporate purposes.
The board of directors of Advantex unanimously determined that the New Debenture will improve the financial position of Advantex and that its terms are reasonable in the circumstances.
The New Debenture will be subject to a statutory hold period of four months plus one day following closing.
Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. More information about Advantex can be found under Advantex's profile on www.sedarplus.com.
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the future business and operations of Advantex. 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 include, but are not limited to, the ability of Advantex to repay any indebtedness, receipt of all applicable governmental and regulatory approvals and changes in Advantex's economic and competitive conditions including but not limited to the industry sectors in which Advantex operates.
The statements in this news release are made 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.
SOURCE Advantex Marketing International Inc.
Mukesh Sabharwal, Vice-President and Chief Financial Officer, Tel: 416-560-5173, Email: [email protected]
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