CALGARY, Oct. 30 /CNW/ - Kelman Technologies Inc. ("Kelman") announced today that it has closed its previously announced CDN$500,000 convertible debenture financing with Epstein Enterprises Inc. ("EEI"), a corporation controlled by Seymour Epstein, Chairman of the Board of Directors and major shareholder of Kelman.
Kelman has issued to EEI a CDN$500,000 principal amount convertible debenture (the "Debenture"), which bears interest at the Prime Rate of the Royal Bank of Canada in effect from time to time plus ten percent (10%) due in four years that will be used for general working capital purposes, in exchange for cancellation of a CDN$500,000 principal amount promissory note dated June 29, 2009 and a cash payment of the outstanding and accrued interest on such note (the "Financing"). All or any portion of the original principal amount of the debenture is convertible, at the option of EEI, into common shares in the capital of Kelman at a conversion price of $2.50 per common share, at any time, on or prior to maturity. Kelman may elect to pay up to five percent (5%) of the interest on the Debenture in kind by adding such annual interest to the principal amount of the Debenture. Any such capitalized interest shall be payable in cash at the earlier of maturity of the Debenture or the date all of the original principal amount of the debenture is converted into common shares.
Kelman Technologies Inc. is a publicly traded Canadian company listed on the TSX Venture Exchange under the trading symbol "KTI". With offices in Calgary and Toronto, Canada, Denver, Houston, and Oklahoma City, United States and Tripoli, Libya, KTI services oil and gas exploration companies with a full suite of seismic processing and on-line data management and data archival services.
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responsibility for the adequacy or accuracy of this release.
SOURCE KELMAN TECHNOLOGIES INC.
For further information: For further information: please visit our web site at http://www.kelman.com/ or contact Mr. Rene VandenBrand, President and CEO at (281) 293-0537, or by email to firstname.lastname@example.org