TORONTO, Sept. 28, 2017 (GLOBE NEWSWIRE) -- Advantex Marketing International Inc. (CSE:ADX) (Advantex), a specialist in marketing loyalty-reward programs, today announced that it has received approval from the requisite holders of its secured non-convertible debentures (the Debentures) issued in December 2013 to extend the maturity date of the Debentures to October 31, 2017 from September 30, 2017. It is anticipated that there will be breaches of financial covenants contained in the Debentures as at September 30, 2017 which have not been waived by the holders of the Debentures.
Interest from September 30, 2017 to October 31, 2017 will continue to accrue and be paid at the interest rate provided in the Debentures on the maturity date.
As the extension may constitute a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101), Advantex has relied on the financial hardship exemption from the formal valuation and minority approval requirements of MI 61-101. As the extension will extend the repayment of the Debentures, the Board of directors of Advantex unanimously determined that the extension will improve the financial position of Advantex and that its terms are reasonable in the circumstances.
About Advantex:
Advantex provides specialized marketing programs that enable members of affinity groups to earn frequent-flyer miles and other loyalty rewards through purchases at participating merchants.
Through our partnerships with Aeroplan, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Caesars Entertainment, we have contractual access to millions of consumers with above-average personal and household income. We also have partnerships with about 1,050 merchants in Canada and the US.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information, go to www.advantex.com.
Forward-Looking Information
This news release contains “forward-looking statements” within the meaning of applicable securities laws relating to the future business and operations of Advantex, including relating to repayment of Debentures and the payment of interest. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. The business and operations of Advantex described herein is dependent on a number of factors and is subject to a number of risks and uncertainties. Factors that could cause actual results to differ materially include those listed under “Working Capital and Liquidity Management”, “General Risks and Uncertainties” and “Economic Dependence” in Advantex’s Management’s Discussion and Analysis for the three and nine months ended March 31, 2017.
The statements in this news release are made as of the date of this release. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and Advantex undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
Contact:
Advantex Marketing International Inc.
Mukesh Sabharwal
Vice-President and Chief Financial Officer
Tel: 905-470-9558 ext. 249
Email: mukesh.sabharwal@advantex.com