Avenue Financial Corporation News Release.Business Editors TORONTO--(BUSINESS WIRE)--Jan. 22, 2004 Avenue Financial Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:AFC (1) (Application Foundation Classes) A class library from Microsoft that provides an application framework and graphics, graphical user interface (GUI) and multimedia routines for Java programmers. ) is pleased to announce with respect to its debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. interest the following: The Corporation had outstanding $2,874,000 principal amount of 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. , convertible into common shares at a conversion price of $0.10 per share as at the debenture interest payment date. This amount has been subsequently reduced by $300,000 leaving $2,574,000 principal amount of debentures outstanding. To reduce the dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. impact of the private placements being undertaken by the Corporation on the debenture holders and to preserve capital, the Corporation has offered the debenture holders the choice of: a) receiving their debenture interest in cash, or b) converting the interest into units valued at $0.10 a unit, each unit consisting of one common share and one share purchase warrant, each warrant entitling the holder to purchase one common share at a price of $0.10 a share for a two year period. Of the $224,704.36 in debenture interest owing, election has been made to take $118,695 in units. This will result in the issuance of 1,186,972 common shares and 976,152 warrants (three of the debenture holders making the election are insiders and cannot receive warrants under regulatory rules). The shares and warrants are subject to a restriction on trading expiring May 22, 2004. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy of this release. |
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