(via Thenewswire.ca)
TORONTO, CANADA - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media management company (the "Company"), is pleased to announce that it has entered into shares for debt agreements with a majority of its current debenture holders (the "Debenture Holders") whereby, of the current outstanding indebtedness of the Company equal to $6,379,656.84 (the "Total Debt"), a total of $4,245,128.26 will be converted into post-Consolidation (as defined below) common shares of the Company at a deemed price of $0.25 per common share (the "Shares for Debt Transaction"). The Company has exceeded the 40% conversion threshold it had previously set and announced in a news release on July 3, 2013 (the "July 3 Release"), as over 66% of the Total Debt is being converted under the Shares for Debt Transaction.
The Shares for Debt Transaction and issuance of the common shares will not result in the creation of a new Control Person (as such term is defined in the TSX Venture Exchange Corporate Finance Manual), will be subject to a four-month hold period from the date of issuance and will be subject to the approval of the TSX Venture Exchange (the "Exchange").
The Company is also pleased to announce that it has completed the consolidation of its issued and outstanding common shares, as previously announced in the July 3 Release (the "Consolidation"). Effective today, the Company's common shares have been consolidated on a basis of ten pre-Consolidation shares for each one post-Consolidation share. The Company now has a total of 16,324,477 common shares issued and outstanding.
The Consolidation was approved by the Company's shareholders at its annual and special shareholders meeting held on August 15, 2013 and has been accepted by the Exchange.
The Company has not changed its name or its trading symbol as part of the Consolidation.
The Shares for Debt Transaction and the Consolidation are being completed as part of a larger debt restructuring plan that was initially announced in the July 3 Release. The Company believes that it is on schedule with respect to the completion of the Release Conditions (as defined in the July 3 Release).
Further updates will be announced with respect to the overall debt restructuring as may be required/appropriate.
About YANGAROO:
YANGAROO is a company dedicated to digital media management. YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform is now the industry standard and powers most of North America's major awards shows.
YANGAROO has offices in Toronto, New York and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF. For further information, please contact Gary Moss at 416-534-0607 ext.111 or visit www.yangaroo.com.
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The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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