NHC secures a $1 million dollar private place MONTREAL, Dec. 23 /CNW/ - NHC Communications Inc. is pleased to announce
a proposed two-tranche $1 million private placement of units consisting of
Secured Convertible Debentures and Common Share Purchase Warrants that will
provide liquidity to fund its working capital requirements and the execution
of its business plan. The second tranche of the proposed private placement
consisting of $675,000 of Secured Convertible Debentures and 3,375,000 Common
Share Purchase Warrants is subject to shareholder approval at the Annual and
Special Meeting of Shareholders to be held in Montreal on January 31, 2000 and
is conditional upon regulatory and TSE approval.
Pursuant to a term sheet dated December 23, 1999 between the Company and
Breakwater Capital Corporation, the Company intends, subject to the fulfilment
of certain conditions, to effect the $1 million private placement. The Secured
Convertible Debentures will mature five years from their date of issuance,
bear interest at 8% per annum, payable monthly, and be convertible into common
shares of the Company at any time prior to maturity at a price of $0.20 per
share. Each Common Share Purchase Warrant will entitle the holder to acquire
one Common Share of the Company at any time up to four years from the issuance
date at a price of $0.20 per share.
The Offering is scheduled to close in two tranches: the first tranche in
the amount of $325,000 is to close on or before January 15, 2000 and will
consist of the issuance of $325,000 of Convertible Debentures at $1,000 per
debenture and 1,625,000 Common Share Purchase Warrants, representing, in
aggregate, up to 3,250,000 common shares of the Company if all of the
debentures included in the first tranche are converted and all of the warrants
included in the first tranche are exercised. The second tranche in the amount
of $675,000 is to close on or about January 31, 2000, subject to shareholder
approval, and will consist of $675,000 of Convertible Debentures and 3,375,000
Common Share Purchase Warrants, representing an issuance of a maximum of
6,750,000 common shares of the Company if all of the Debentures in the second
tranche are converted and all of the warrants included in the second tranche
are exercised.
The Company is actively pursuing other strategies that will be in line
with its focus on switching solutions.
NHC Communications Inc. (TSE: NHC) specializes in developing products
that increase the competitive edge of its customers by applying innovative
technology to the delivery of high-speed mixed media networks. NHC is
committed to its customers by delivering superior solutions for physical layer
network infrastructures.
-0- 12/23/1999