TORONTO, March 3 /CNW/ - Multimedia Nova Corporation (TSX-V: MNC.A) (the "Corporation") is pleased to announce it has received TSX Venture Exchange ("TSXV") acceptance to complete the previously announced non-brokered shares for debt placement to issue Class A subordinated voting shares (the "Class A Shares") at a price of $0.15 per share. The issuance of the Class A Shares is being completed pursuant to agreements made by the Corporation with participating employees and certain trade payable suppliers of the Corporation (collectively, the "Debt Settlement Agreements"). No bonus, finder's fee or commission is being paid in connection with the Debt Settlement Agreements.
Pursuant to the Debt Settlement Agreements, the Corporation immediately issues 1,309,918 Class A Shares at a share price of $0.15 per Class A Share, in order to settle $196,487.70 of debt owing by the Corporation to the participating employees and trade payable suppliers as of December 31, 2009. The Corporation will use the proceeds pursuant to the Debt Settlement Agreements to reduce accounts payable and to improve its working capital position. All securities issued pursuant to the Debt Settlement Agreements are subject to a four (4) month hold period that will expire on July 4, 2010.
Prior to the issuance of the Class A Shares under the above-noted Debt Settlement Agreements, the Corporation had 8,082,350 Class A Shares outstanding. Upon the issuance of the Class A Shares contemplated by the Debt Settlement Agreements, the Corporation will have 9,392,268 Class A Shares outstanding.
Multimedia Nova Corporation is an integrated communications enterprise based in Toronto, Ontario.
This press release shall not constitute an offer to sell or solicitation of an offer to buy securities in any jurisdiction. The Class A Shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirements.
The TSXV has neither approved nor disapproved of the contents of this press release and it does not accept responsibility for the adequacy or accuracy of the contents hereof.
SOURCE MULTIMEDIA NOVA CORPORATION
For further information: For further information: please contact Ms. Lori Abittan, President and Chief Executive Officer or Mr. Joe Mastrogiacomo, Chief Financial Officer at (416) 785-4300, fax (416) 785-4303