TORONTO, Sept. 18, 2015 /CNW/ - Mitec Technologies Inc. ("Mitec") announces that Abe Schwartz, Chairman of Mitec's Board of Directors, has expressed a desire to negotiate the repayment of $1,500,000 in secured promissory notes which are repayable on demand, secured convertible debentures in the amount of $500,000, in addition to other secured and unsecured commitments totaling approximately $297,000.
"I regret to inform shareholders that delays in the execution of Mitec's business plan and a deterioration in market conditions have compelled Mr. Schwartz to exercise his rights with respect to his financial interest in Mitec", said Jeffrey Mandel, President and CEO of Mitec. "However, Mr. Schwartz has made it clear to me that his desire is to negotiate a mutually acceptable solution, if possible, in order to avoid Mitec having to seek any type of creditor protection", said Mandel.
Mitec intends to work with Mr. Schwartz in order to resolve this matter as quickly as it is able and will report back to shareholders on events as they occur.
This news release contains forward-looking statements which reflect Mitec's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to Mitec. Investors should consult Mitec's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Mitec assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
Neither 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.
The Company seeks safe harbor.
SOURCE Mitec Technologies Inc.
For further information: Mr. Jeffrey Mandel, President & CEO, IR@mitectech.com, Tel.: (905) 822-8170