News again...Didn't realize my last post had nothing in it....
Jan 13, 2010 17:21 ET
Radiant Announces Issuance of Secured Debenture and Bonus Shares
TORONTO, ONTARIO--(Marketwire - Jan. 13, 2010) -
NOT FOR DISTRIBUTION IN THE UNITED STATES
Radiant Energy Corporation, (TSX VENTURE:RDT) ("Radiant") announced that it has received approval from the TSX Venture Exchange ("TSXV") to complete an issuance (the "Issuance") of a secured debenture in the principal amount of $100,000 maturing two years from the date of its issue and carrying an interest rate of 12% per annum (the "Debenture"). The Debenture will be secured by a first charge on the assets of Radiant and its U.S. operating subsidiary, Radiant Aviation Services, Inc. Radiant shall have the option, under certain conditions, to pay interest owing pursuant to the Debenture in common shares of Radiant, subject to approval from the TSXV. Additionally, as a bonus to the participating lender acquiring the Debenture, Radiant will issue four of its common shares to the lender for every $1.00 invested in the Debenture (the "Bonus Shares"), for a total issuance of 400,000 Bonus Shares.
David Williams, the Chairman and President of the Company, invested $100,000 principal amount in the Debenture (the "Insider Loan"). The Insider Loan and the related issuance of Bonus Shares constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Radiant is relying on an exemption to the minority shareholder approval requirement of MI 61-101 as the Insider Loan is being entered into in response to the financial difficulties of Radiant. The Issuance, including the Insider Loan and the issuance of Bonus Shares, was approved by Radiant's independent directors. Radiant's independent directors have also reviewed the terms of the Issuance with management and have determined that such terms are reasonable in the circumstances, the Issuance will improve the financial condition of Radiant and the Issuance is in the best interests of Radiant. The issuance of Bonus Shares to David Williams has not materially affected the percentage of securities of Radiant beneficially owned and controlled by this individual.
The net proceeds of the Issuance will be used to address Radiant's immediate working capital needs while it continues to further its marketing and sales initiatives in respect of its Radiant Deicing Systems. The infusion of cash is expected to have initial short-term benefits, but Radiant's business and affairs are not otherwise expected to be significantly impacted by the Issuance.
The Bonus Shares issued in conjunction with the Issuance will be subject to a four-month hold period under applicable securities laws and the policies of the TSXV.
About Radiant Energy Corporation
Radiant is the developer and marketer of Radiant Deicing Systems. Radiant's product is the only non- glycol based alternative approved by the US Federal Aviation Administration for the pre-flight ground deicing of aircraft. Aircraft deicing with Radiant's technology offers savings to airports and airlines over the use of conventional glycol-based deicing systems, reducing aircraft treatment costs and significantly reducing the negative impact of glycol on the environment.
This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant Energy Corporation, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.