Avcorp Announces New Financing.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 14, 2003 Avcorp Industries Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AVP AVP arginine vasopressin. ) announced today that it has arranged financing, scheduled to close today, with a major Canadian bank to refinance its existing bank debt. The company continues to work towards closing the sale and leaseback sale and leaseback The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Also called leaseback. of its land and building, to source additional long-term financing Long-term financing Liabilities repayable in more than one year plus equity. partners and to renegotiate re·ne·go·ti·ate tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates 1. To negotiate anew. 2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor. other debt. The company has also received short-term loans to provide temporary working capital until the sale and leaseback, other long term financing and other debt re-negotiation are completed. In partial consideration of this financial support, the company issued 3,652,450 warrants to purchase common shares of the company at a price of $0.38 per common share exercisable until August 14, 2005. One of the participants in providing these short-term loans is Working Opportunity Fund (WOF) which will receive 1,826,225 warrants. WOF currently owns 3,012,227 common shares of the company, other share purchase warrants and $2,500,000 of 8% convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. . Avcorp Industries Inc. is a Canadian aerospace industry manufacturer. The Company is a single-source supplier for engineering design, manufacture and assembly of subassemblies and complex major structures for aircraft manufacturers. Certain statements in this press release that are not purely historical constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future. The information in this press release is based on information available to the Company as of the date hereof and the Company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks include, among others, general business and economic conditions and competitive actions as well as other risks and uncertainties. JOHN H. NICHOLSON, President and Chief Executive Officer |
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