Debt negotiations
Futura Loyalty continues debt negotiations
2012-09-11 16:55 CT - News Release
Mr. David Campbell reports
FUTURA PROVIDES UPDATE ON DEBT NEGOTIATIONS
The Futura Loyalty Group Inc. is continuing discussions with various debtholders relating to the conversion of their debt into shares in the capital of the company or in some cases, extension of the maturity dates of their debt. Discussions are continuing, however, as at Sept. 10, 2012, debtholders holding a principal amount of $1,972,000 of the company's total principal amount outstanding of $5,143,590 have agreed to convert their debt into shares in the capital of the company subject to the company completing a consolidation of its shares which was approved by shareholders at the company's most recent shareholder meeting. There is no assurance that such consolidation will be completed and the board of directors has no current intention to effect a consolidation. The board of directors will determine the timing or necessity of a consolidation based on its continuing fundraising efforts and market conditions, and any consolidation will be subject to receiving any required regulatory approvals at the time of such proposed consolidation. The company is in discussions with subordinated debtholders holding a principal amount of $471,463 and having a maturity of Aug. 31, 2012, but no arrangements have been made as of the date hereof. Futura will keep shareholders apprised of new developments relating to these matters as negotiations are settled.