Sonomax note holders agree to exchange notes
MONTREAL, April 1 /CNW Telbec/ - Sonomax Technologies Inc. (TSX Venture: SHH) is pleased to announce that the holders of 9 of the corporation's 15 outstanding unsecured convertible notes have agreed to exchange approximately half of their current notes and accrued interest for new unsecured convertible notes of Sonomax. These note holders represent $1,177,000 in the aggregate principal amount of outstanding notes plus accrued interest of $117,700.
The new notes, representing an aggregate principal amount of $706,200, will mature on March 31, 2011 and bear interest at a rate of 10% per annum, payable semi-annually in arrears. The new notes may be converted, at the option of their holders, into Sonomax common shares at a price of $0.10 per share. In addition, Sonomax will issue one common share purchase warrant to the holders of the new convertible notes for each dollar of principal amount of the new notes. As a result, Sonomax will issue an aggregate of 706,200 warrants to the holders of the new convertible notes. Each warrant will entitle the holder thereof to acquire one additional common share of Sonomax at a price of $0.10 until March 31, 2011, the maturity date of the new convertible notes. The balance of $588,500 was repaid to the note holders.
"This show of support by our noteholders demonstrates their understanding of the potential of the new Sonomax and goes a long way towards the company's financial self-sufficiency in it's mission critical objective of making the V4 self-fit earpiece a reality", said Nick Laperle, Sonomax's President and Chief Executive Officer.
The issuance of the new convertible notes and warrants has been conditionally accepted by the TSX Venture Exchange, subject to the filing by Sonomax of standard documentation. The certificates representing the new notes and warrants contain a restrictive legend or "hold period" expiring on August 1, 2010.
About the New Sonomax:
Sonomax is an R&D and licensing company of in-ear technologies. The Company's patented instant custom-fitting earpieces deliver the most comfortable sound-enhancing earpieces in the world. This unique technology enables a wide range of applications such as earphones for the music and gaming markets, hearing protection for military and industrial applications, affordable hearing aids and the ever-expanding Bluetooth(TM) headset market.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Sonomax Hearing Healthcare Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
%SEDAR: 00013736EFor further information: Nick Laperle, President and CEO, Sonomax Technologies Inc., (514) 932-2674 ext 2229, firstname.lastname@example.org