TSX Venture Exchange
Shares Outstanding (Non-Diluted): 23,876,327
TORONTO, April 29 /CNW/ - Cenit Corporation ("Cenit" or the "Company), is pleased to report that it has reached a successful arrangement with its debenture and note holders that will permit a restructuring of those obligations aggregating approximately $407,000 including interest of $5,874. In accordance with TSX-V Policy 4.3, Cenit will issue approximately 8,140,000 units in full and final satisfaction of all amounts owing. Each unit will be valued at $0.05 and will consist of one common share and one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for $0.10 for a period of two years (the "First Warrant Term") from the closing of the transaction (the "First Closing Date"), provided, however, that should the closing price at which the common shares trade, equal or exceed $0.20 for 15 consecutive trading days following the date that is four months and one day after the First Closing Date, Cenit may accelerate the First Warrant Term to the date which is 30 days following the date a press release is issued by Cenit announcing the reduced First Warrant Term. In accordance with TSXV policies an insider who holds notes in the principal amount of $10,000 will waive entitlement to the warrants issued in settlement of that debt.
The debenture restructuring will result in Cenit having approximately 32 million shares issued and outstanding, of which the newly issued 8.1 million shares represent 25% of the issued and outstanding shares in the Company. There will be no new insiders as a result of the restructuring
Concurrently Cenit is undertaking a non-brokered private placement to raise up to $300,000. These funds are to be utilized for general working capital purposes and to create balance sheet liquidity so as to better position Cenit to make an acquisition when the opportunity is identified. The private placement will consist of units sold at $0.10 per unit. Each Unit shall consist of one common share and one common share purchase warrant. Each warrant shall have the same terms as the warrants issued to the debenture and note holders. Each whole common share purchase warrant entitles the holder to acquire one common share for $0.15 for a period of two years (the "Second Warrant Term") from the closing of the transaction (the "Second Closing Date"), provided, however, that should the closing price at which the common shares trade, equal or exceed $0.25 for 15 consecutive trading days following the date that is four months and one day after the Second Closing Date, Cenit may accelerate the Second Warrant Term to the date which is 30 days following the date a press release is issued by Cenit announcing the reduced Second Warrant Term.
The debt restructuring and private placement are subject to regulatory approval and closing. All securities issued in conjunction with the debt restructuring and private placement will be subject to a hold period, which expires four months after closing.
Consistent with its previously stated intentions, the Company continues to seek out acquisition opportunities that are financially prudent and accretive. Several opportunities are under consideration at the present time and Cenit is optimistic that it will soon be in a position to announce a transaction that will materially enhance shareholder value.
About Cenit Corp.
Cenit Corporation is a Canadian holding company, continually looking for strategic investment alternatives to enhance shareholder value. Cenit presently operates subsidiaries in diverse market niches: Blue Port Technologies Inc. (BP) and Health Promotions Strategies Inc. (HPSI). BP has a division Techwork which provides recruiting placement services. The other business, HPSI, was a registered gaming supplier but did not renew its license in early 2008 due to the fact that Cenit sold the customer list. HPSI continues to receive a residual income stream.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
SOURCE Superior Copper Corporation
For further information: For further information: please call Birks Bovaird, CEO at (416) 214-9152 or visit the Company's web site at www.cenitcorp.com