Concert Industries - Private Placement.VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Oct. 25, 1996-- Concert Industries (VSE See DOS/VSE. VSE - Virtual Storage Extended , ME CNG CNG Compressed Natural Gas CNG Calling (Tone) CNG Comfort Noise Generation CNG Cryptography Next Generation (Microsoft Windows Vista) CNG Centre National de Génotypage .) The Directors of Concert Industries Ltd. are pleased to announce that the Company has entered into an agreement with a European partner, an existing shareholder, to provide financing for its German expansion and other strategic investments. Under the terms of the agreement Concert will issue a five year subordinated convertible debenture 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. having a minimum subscription of $3,500,000 to a maximum of $7,000,000. The principle advanced under the 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. will be convertible into common shares of the Company at the greater of $2.25 or market price of the Company's shares on the closing date of the Debenture. The debenture will bear interest at an annual rate of 6 percent which is capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. and converted into common shares within the terms of the debenture. The conversion rate provided in the debenture is also performance based which, at the holders option, could allow for the conversion into a maximum of 4,704,000 common shares. The debenture holder will receive warrants or options equal to the principle advanced under the debenture divided by the greater of $2.25 or market price of the Company's shares on the closing date of the Debenture. Each warrant or option entitling the holder to purchase one additional common share for a period of three years. The exercise price of the warrant is the greater of $2.25 or market price of the Company's shares on the closing date of the debenture. The Company will have the right to force conversion of the debenture after three years if the market price of its common shares exceeds $4.94. The debenture will close after all regulatory and shareholder approvals have been received but by no later than February 15, 1997. The Company has also entered into an agreement with its European partner to invest up to $5,000,000 into an industry related Joint Venture in Europe. This strategic investment will further strengthen Concert's position within the airlaid industry. The investment is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the advancement of the maximum amount under the debenture and the further exercise of $5,000,000 of warrants and or options. The private placement and subsequent investment into the Joint Venture project in Europe are subject to regulatory and shareholder approval. NOTE: The Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. CONTACT: Concert Industries Ltd Dieter Peter, 604/681-1008 604/681-2627 (FAX) INTERNET: http://www.air-laid.com E-MAIL e-mail: see electronic mail. in full electronic mail Messages and other data exchanged between individuals using computers in a network. : inrel@air-laid.com |
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