NHC Announces Closing of the First Tranche of a $1 Million Private Placement
MONTREAL, Jan. 20 /CNW/ - NHC Communications Inc. (TSE: NHC) announced
today that it has completed the first tranche of the placement agreement with
Breakwater Capital Corporation that was announced on December 23, 1999.
With the first round of this two-tranche placement, NHC has issued
$325,000 of 8% Secured Convertible Debentures and a total of 1,625,000 Common
Share Purchase Warrants, representing, in aggregate, up to 3,250,000 common
shares of the Company if all the debentures included in this first-tranche are
converted and all the warrants are exercised. In the event that the
shareholders do not approve the second tranche of the private placement,
812,500 warrants issuable pursuant to the first tranche shall be automatically
cancelled.
The second tranche of this placement is subject to shareholder approval
on January 31st, 2000 at NHC's Annual and Special Meeting, and will consist of
$675,000 8% Secured Convertible Debentures and 3,375,000 Common Share Purchase
Warrants, representing, in aggregate, up to 6,750,000 common shares of the
Company if all the debentures included in this second tranche are converted
and all the warrants are exercised.
NHC is actively pursuing other financial strategies to fund its working
capital requirements, in the event that the shareholders do not approve the
second tranche of the placement deal.
ABOUT NHC COMMUNICATIONS
NHC Communications Inc., is an international leader in the design and
manufacture of innovative physical layer high-speed Switched Accessed
Solutions for the established and next-generation voice/data networks. With a
unique range of technologies developed from years of experience, NHC is now at
the heart of today's Corporate Enterprise Service Market and the
Telecommunications Industry.
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For further information: Sylvain Abitbol, President and CEO,
NHC Communications Inc., 1-800-361-1965, Fax: (514) 735-8057,
Internet:pr@nhc.com; Sylvain Brossard, Vice-president Finances and
Operations, NHC Communications Inc., 1-800-361-1965,
Fax: (514) 735-8057,Internet: s.brossard@nhc.com, Web Site: www.nhc.com
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