VANCOUVER, June 20, 2013 /CNW/ - On4 Communications, Inc. ("On4") (OTCQB: ONCI) is pleased to announce that it has reduced the company's outstanding debt by an additional $485,000. On December 15, 2011 NetCents Systems Ltd. ("NetCents") and On4 entered into a binding share exchange agreement where, upon closing, On4 was to acquire 100% of the outstanding shares of NetCents.
The management of On4 Communications continues to work diligently to reduce balance sheet debt as part of the company's pre-merger restructuring obligations. In the last two months, On4 has reduced its debt by a further $485,000 bringing the company's total debt reduction to approximately $1.0 million over the last six months.
While it has taken longer than anticipated for On4 to meet its pre-merger corporate restructuring and debt reduction obligations, both NetCents and On4 remain committed to finalizing the merger between the two parties. The Management of both companies will continue to work to close the transaction in a timely manner.
NetCents CEO, Clayton Moore said, "NetCents sees the opportunities that would result from a merger between NetCents and On4, but for both companies to realize the most benefit from the merger On4 has to complete its to restructuring and debt reduction."
In the interim, NetCents will focus on the continued integration of their payment solution onto their merchants' payment platforms and increasing their revenues from operations.
On4 Communications is a development stage company focused on wireless and online payment technologies. The Company is a Development Stage Company, as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 915, Development Stage Entities, and has not yet generated significant revenues from their intended business activities.
NetCents is an integrated, international financial transaction hub that delivers a 100% secure, self-administered and anonymous payment system developed for the purpose of making safe online purchases and money transfers. The NetCents technology is simple, innovative and works with existing banking platforms while protecting users from identity theft or credit card fraud and can significantly reduce transaction costs for merchants and consumers.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See ON4's filings with the United States Securities and Exchange Commission which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
SOURCE: On4 Communications, Inc.
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