DTI Announces $4 Million Private Placement Agreement With Mercantile Bancorp Limited.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 22, 2000 DTI Diffusion tensor imaging (DTI) A refinement of magnetic resonance imaging that allows the doctor to measure the flow of water and track the pathways of white matter in the brain. Dental Tech(CDNX CDNX See Canadian Venture Exchange (CDNX). :DTI) DTI Dental Technologies Inc. ("DTI"), a leading provider of dental laboratory services, today announced a significant development that will support the Company's acquisition and expansion initiatives. DTI has entered into an agreement with Mercantile Bancorp Limited for a private placement of convertible debentures totaling $4,000,000 in three draws. The first draw, in the amount of $1,500,000 will be made available at the time of closing, currently anticipated to be March 18, 2000. DTI can elect to receive the balance of $2,500,000 in two additional draws during the subsequent 18 month period, subject to approval of DTI's Board of Directors, Mercantile Bancorp's Investment Committee, and the satisfaction of certain financial criteria. The principal amount of the initial draw will be convertible at any time in whole or in part for common shares of the Company at a conversion price of $0.80 and will bear an interest rate of 11% per annum Per annum Yearly. . The principal amount of second and third draws will be convertible at any time in whole or in part for common shares of the Company at a conversion price equal to 110% and 105% (respectively) of the average 30 trading price Trading price The price at which a security is currently selling. prior to each draw down and will bear an interest rate equal to the greater of a rate determined with reference to prevailing Government of Canada The Government of Canada is the federal government of Canada. The powers and structure of the federal government are set out in the Constitution of Canada. In modern Canadian use, the term "government" (or "federal government") refers broadly to the cabinet of the day and rates at the time of drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: or 10% per annum. Any unconverted balance will mature and be repayable five years from the initial closing. The Company will have specific redemption rights after December 31, 2001, subject to share value performance, satisfactory maintenance of certain key covenants and financial ratios. DTI plans to use proceeds of the financing to support its regional acquisition programs in Canada and the USA. Paolo Kalaw, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of DTI Dental Technologies Inc., states," Based on their record of successful investments, the support and financial commitment from Mercantile represents a tremendous milestone for DTI. We look forward to working with our new partners at Mercantile to create exceptional shareholder value." Mercantile is a private merchant investment company that specializes in providing capital and advisory services to emerging and mid-sized businesses. Mercantile has been successfully investing in this sector since 1989, focusing its activities primarily in Western Canada and the Pacific North-Western United States. DTI acquires, consolidates and manages dental laboratories that design and fabricate custom dental prosthetics such as crowns, bridges, dentures, implants and orthodontic orthodontic (ôr´th  dän´tik),adj appliances. Demographic trends indicate that cosmetic and restorative dentistry to improve aging teeth will continue to grow rapidly in the years ahead. DTI is embarking on an extensive expansion program for fiscal 2000, concentrating on dental laboratories in Canada and various locations in the United States. ON BEHALF OF THE BOARD "PAOLO KALAW", CHIEF EXECUTIVE OFFICER DTI DENTAL TECHNOLOGIES INC. The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) has neither approved nor disapproved the contents contained herein. |
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