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Trenton Industries Inc. -- gets commitment from Bank of Montreal.

TORONTO--(BUSINESS WIRE)--Feb. 10, 1995--Trenton Industries Inc. (TSE:TII) (the "Company") is pleased to announce that as the result of its performance of its undertakings with the Bank of Montreal (the "Bank"), the Bank has agreed to continue to support the Company and to extend to February 17, 1995 the Bank's deadline for a firm takeout financing commitment.

The Company also announces that in order to bridge its working capital requirements while changing bankers, it has this day completed $1,020,000.00 of bridge loan financing to June 15, 1995 (being a mix of new advances and extensions of existing advances). The bridge lenders' fee for this facility, in addition to interest, is $111,410.00 which may be satisfied at the Company's election and subject to regulatory approval by the issue of 857,00 common shares of the Company at $0.13 per share.

In conjunction with the Company's pursuit of new operating credit banking arrangements to support the growth of the Company and its subsidiaries, the Company intends to pursue a number of share issue transactions in order to re-rationalize the debt and equity structure of the Company and its subsidiaries. The intended transactions will include new equity capital by private placement, converting existing debt into equity, converting existing preferred shares of the Company into common shares, and exchanging shares of the Company's subsidiaries held by minority interests for common shares of the Company. The foregoing transactions are still being negotiated and are not subject to binding legal documentation at this time. If all of the transactions materialize, the Company would anticipate issuing its shares at a range of prices from $0.10 per share (to obtain arm's length new equity capital) to $0.17 per share (to acquire minority share interests).

The Company is also very pleased to announce that Bryan McJannet, formerly Managing Partner -- Management Services of Hees International Bancorp., will be joining the Company as its full time Chairman and Chief Executive Officer. He will be focusing on strategic planning and finance for the Company and its subsidiaries. Brian Kinmond, who has successfully operated and grown Trenton Machine Tool Inc., will continue as President and Chief Operating Officer of the Company and its subsidiaries and will focus on operational aspects of the business.

The board of directors of the Company feels that Bryan McJannet and Brian Kinmond, whose skills complement one another, constitute the nucleus of a strong executive team and that the Company will be well positioned to manage and sustain its growth.

CONTACT: Trenton Industries Inc., Toronto

Brian Kinmond, 905/508-0405; fax: 905/508-0888 REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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Publication:Business Wire
Date:Feb 10, 1995
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