TORONTO, June 21, 2019 /CNW/ - Advantex Marketing International Inc. (CSE: ADX), a specialist in working capital and loyalty marketing products for merchants, today announced a business update.
Advantex has begun converting its merchant base to re-defined working capital and marketing services products, through among others its Aeroplan program, and has wound-up the bonus rewards programs it has operated for two Canadian financial institutions. The Board of Directors of Advantex (the "Board") has initiated a Business Review to identify, examine and consider all potential opportunities to enable Advantex to maximize the benefits of its new product offerings while protecting the interest of its stakeholders.
Advantex will disclose developments with respect to the review process if a potential opportunity is identified and/or further disclosure is required.
Advantex has received approval from the requisite holders of its secured 9% non-convertible debentures (the Debentures) issued in December 2017 to waive an event of default on account of Advantex not paying the interest for the period December 16, 2018 to June 15, 2019 on the due date. The overdue interest will continue to accrue interest at the same rate as the principal until it is paid.
The holders of the Debentures shall receive an aggregate of 75,000,000 common shares of Advantex as compensation for waiving such default. All common shares issued to the holders of the Debentures are subject to a four month hold period from the date of issuance.
As the waiver and the issuance of common shares may constitute a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101), Advantex has relied on the financial hardship exemption from the formal valuation and minority approval requirements of MI 61- 101. The Board of directors of Advantex determined that the waiver will improve the financial position of Advantex and that its terms are reasonable in the circumstances.
Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of an affinity group to earn frequent-flyer miles through purchases at participating merchants.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information, go to www.advantex.com
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the future business and operations of Advantex. Actual results and developments may differ materially from those contemplated by these statements. The business and operations of Advantex described herein is dependent on a number of factors and is subject to a number of risks and uncertainties. Factors that could cause actual results to differ materially include those listed under "Working Capital and Liquidity Management", "General Risks and Uncertainties" and "Economic Dependence" in Advantex's Management's Discussion and Analysis for the three and nine months ended March 31, 2019.
The statements in this news release are made as of the date of this release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and Advantex undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
SOURCE Advantex Marketing International Inc.
For further information: Mukesh Sabharwal, Vice-President and Chief Financial Officer, Tel: 416-560-5173, Email: [email protected]