TSX Venture Exchange: VSI
VANCOUVER, Sept. 11, 2012 /CNW/ - VendTek Systems Inc. (TSX-V: VSI) ("VendTek" or the "Company") is pleased to announce that it plans to conduct a non-brokered private placement of 860 debenture units (the "Debenture Units"), with each Debenture Unit consisting of one 6% unsecured convertible debenture of the Company having a principal amount of $1,000 (the "Debentures"), and 1,000 warrants (each, a "Warrant") to purchase one common share of the Company (the "Private Placement"). The Debentures will each mature on the date that is two years from the closing of the Private Placement and entitle the holder thereof to acquire one common share of the Company at a price of $0.11 per common share on conversion. Each Warrant is exercisable for two years from the closing of the Private Placement to acquire one common share of the Company at a price of $0.15 per common share. Privinvest Offshore SAL (Holding) ("Privinvest Offshore"), the Company's largest shareholder, is intended to be the sole subscriber for Debenture Units.
To the best of the Company's knowledge, Privinvest Offshore currently holds 19,203,833 common shares, representing approximately 33.01% of the Company's issued and outstanding common shares, as well as 4,126,666 common share purchase warrants and a $750,000 principal amount convertible debenture of the Company. Upon completion of the Private Placement, Privinvest Offshore will hold 19,203,833 Common Shares, representing 33.01% of the Company's issued and outstanding common shares, as well as 4,986,666 common share purchase warrants, a $750,000 principal amount convertible debenture of the Company and a $860,000 principal amount convertible debenture of the Company.
The Company intends to use the net proceeds from the sale of the Debenture Units to continue the Company's expansion plans for its Brazilian operations. As the Company's Brazilian subsidiary continues to increase the number of transactions that it processes, it needs to acquire additional inventory and will require greater working capital to support its growth initiatives.
No finder's fee will be payable in connection with the issuance of the Debenture Units.
The Private Placement is subject to regulatory approval, and all securities issued in connection with Private Placement will be subject to a four-month and one day hold period under applicable securities laws.
VendTek develops and licenses automated transaction system software and supporting technologies. VendTek's customers, subsidiaries and its Now Prepay division use e-Fresh™ software to build electronic, prepaid services networks that enable consumers to purchase prepaid products and services via POS and self-serve terminals connected to a central server. This system creates significant value through improved efficiencies compared to a traditional distribution model. e-Fresh™ reduces shrinkage and inventory requirements for vendors while improving consumer access to prepaid products and services by completely eliminating physical cards and vouchers. VendTek has deployed its software around the world including Canada, United States, Asia, the Middle East and Africa. For further information please visit the Company's websites www.vendteksystems.com and www.nowprepay.com.
This news release contains statements which are not current statements or historical facts and are "forward-looking information" within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, contained in this news release constitute forward-looking information. Wherever possible, words such as "plans", "expects" or "does not expect", "budget", "forecasts", "projections", "anticipate" or "does not anticipate", "believe", "intent", "potential", "strategy", "schedule", "estimates" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved and other similar expressions have been used to identify forward-looking information. These forward-looking statements relate to, among other things, the completion of the Private Placement and the Company's expectations regarding the use of proceeds from the Private Placement.
Although the forward-looking information in this news release reflects the Company's current beliefs on the date of this news release based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Company cannot be certain that actual results, performance, achievements, prospects and opportunities, either expressed or implied, will be consistent with such forward-looking information. By its very nature, forward-looking information necessarily involves significant known and unknown risks, assumptions, uncertainties and contingencies that may cause the Company's actual results, assumptions, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, among other things, revenue growth, operating results, the market demand for the Company's products, product development, and litigation as well other factors described in the Risks Related to our Business Section in the Company's 2011 annual Management Discussion and Analysis. There may be other factors that cause results, assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended.
There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially, from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release. Accordingly, all such factors should be considered carefully when making decisions with respect to the Company, and prospective investors should not place undue reliance on forward-looking information. The Company assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: VendTek Systems Inc.
For further information:
Samantha White at 604-805-4653 or 1-800-806-4958 or email@example.com.