MONTREAL, Oct. 31, 2013 /CNW Telbec/ - Aptilon Corporation ("Aptilon" or the "Company") (NEX: APZ.H), today announced that it has closed the refinancing of DMD Marketing LP and DMD Marketing Corp. (collectively "DMD").
This refinancing was made possible by a senior credit facility of up to US $5,000,000 granted by a US based lender and by the reduction of the balance of purchase price to be paid to the vendor in connection with the acquisition of the DMD assets in 2009 (the "Vendor").
The senior credit facility
The senior credit facility of up to US $5,000,000 is comprised of a US $4,000,000 revolving credit facility and a US $1,000,000 term loan. The purpose of this senior credit facility is to finance an accelerated US $3,000,000 payment to the Vendor and to provide working capital to DMD. The senior credit facility is secured by a first-ranking security interest on all of DMD assets and on the limited partnership interests held by Aptilon Holdings Inc. and 4522401 Canada Inc. in DMD Marketing LP. The senior credit facility matures on the third anniversary of its closing.
The revised terms of payment of the DMD acquisition
Under the terms of the agreement with the Vendor, the repayment schedule of the balance of purchase price relating to the acquisition of the DMD assets has been modified. The Vendor has agreed to reduce the balance owed to it to US $11.85 Million. The reduced balance shall not bear interest and it is secured by a second-ranking security interest on the assets of DMD Marketing Corp. and the shares of DMD Marketing Corp. held by DMD Marketing LP. The reduced balance will be repaid by way of a payment of US $125,000 to be made on December 15, 2013 and, starting on January 15, 2014, on the 15th day of each month thereafter, by payments corresponding to the higher of US $125,000 or 1/12 of 35% of the annual EBITDA of DMD.
Filing of financial statements
At this stage, it is anticipated that the December 31, 2012 audited financial statements and the March 31, 2013 and June 30, 2013 along with the related MD&A will be filed no later than November 11, 2013. It is also anticipated that the filing of the September 30, 2013 financial statements will be completed no later than November 29, 2013.
The Company will hold its annual meeting of shareholders on December 6, 2013.
About Aptilon Corporation
Aptilon is a healthcare marketing services company that enables access to healthcare professionals, including physicians, pharmacists, nurses, and other allied health professionals through the channels of direct mail and email.
This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Aptilon. A number of factors could cause actual events, performance or results to differ materially from the events performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Aptilon does not assume any obligation to update or revise them to reflect new events or circumstances.
Neither Nex, TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of NEX and the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Aptilon Holdings
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