IPD INKS $1 MILLION FINANCING DEAL WITH This is great news, the stock can only go up tomorrow.
International Parkside arranges $1-million financing
International Parkside Products Inc IPD
Shares issued 10,027,087 Jun 17 close $0.34
Tue 17 Jun 2003 News Release
Mr. Gary Ungaro reports
PARKSIDE INKS $1 MILLION FINANCING DEAL WITH CORNERSTONE
International Parkside Products has reached an agreement with Cornerstone
Technologies (VCC) Ltd. for a financing of up to $1-million in preferred
shares of the company's wholly owned operating subsidiary, Parkside Optical
Inc.
Cornerstone has agreed to purchase the preferred shares at a minimum price
of 45 cents per share and the preferred shares will be exchangeable into
common shares of the company on a 1:1 basis. The preferred shares will
carry a 6.5-per-cent annual dividend, payable quarterly, based on the
weighted average of funds invested during the quarter. Once the preferred
shares have been exchanged for the common shares, all rights to receive the
dividend will immediately cease.
The preferred shares and any common shares that may be issued in exchange
for the preferred shares are subject to a hold period of five years,
commencing from the date of investment of the preferred shares.
Cornerstone is a venture capital corporation registered under the Small
Business Venture Capital Act. The subsidiary has received an advanced
ruling that it qualifies as an eligible small business under the act.
Cornerstone will offer its own shares to B.C. taxpayers who are eligible to
receive a 30-per-cent tax credit.
The subsidiary has paid a fee of $28,000 to Triton Management Inc. (the
manager of Cornerstone) in consideration for consulting and marketing
services. The fee is fully refundable in 90 days should Cornerstone fail to
meet certain minimum financing targets within that period.
Under the terms of the agreement, Cornerstone will finance the $1-million
on or before Dec. 31, 2003. The subsidiary will have the right to extend
the deadline for the financing beyond this date should it wish to do so.
Cornerstone has earmarked the first $1-million of its investments
exclusively to the subsidiary. Cornerstone will have the right to finance
up to a total of $3-million, provided such financing would not cause TSX
Venture Exchange reverse takeover rules to apply.
Parkside will use the financing to accelerate its carbon-black cleaning
technology product development program and to aggressively market its new
products Digi-Klear and Vidimax.
The proposed financing and exchange of preferred shares for common shares
are subject to regulatory approval.
Cornerstone director Steve Cozine stated: "We feel strongly that an
investment in Parkside at this point is a win for both Parkside and our
Cornerstone investors. The funds will help to grow the business more
quickly and allow Parkside to take advantage of market opportunities that
will enhance the company's long-term position in the marketplace."
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