( BW)(TELEPANEL)(TLSXF)(TLS.TO) Telepanel Announces New Debt Facility, Rationalized Debt Arrangement And Corporate Restructuring
Business Editors
TORONTO--(BUSINESS WIRE)--July 12, 2001--Telepanel Systems Inc. (OTCBB:TLSXF) (TSE:TLS.), a leader in electronic shelf label systems for retail stores, today announced that The VenGrowth Investment Fund Inc. and the Board of Directors has agreed to lend approximately $450,000 to Telepanel Systems Inc. pursuant to demand promissory notes.
This facility will be used to bridge the company to its next round of financing.
The company has also reached an agreement to extend and rationalize existing debt facilities with Royal Bank Capital Partners and VenGrowth. This facility will include the accrued and unpaid interest and the principal and will carry a consolidated interest rate at 16% per annum. The new facilities will mature on July 12, 2003 and will be convertible at a market price established prior to issuance of the annual proxy circular and subject to the approval of the shareholders at the annual meeting. In addition, the lenders will seek opportunities to commit further operating capital to Telepanel Systems Inc. to be provided from the proceeds of the proposed sale of some of their current holdings of common stock and/or convertible debentures.
The agreements on new financing and refinancing of our current debt will allow Telepanel to release the January 31, 2001 annual audited financial statements and the April 30, 2001 quarterly financial statements. With the resolution of these debentures and subject to our auditor's approval we expect to be able to issue our financial statements shortly. The company has been advised that the current OSC cease trade order will be lifted concurrently with filing of the audited annual financial statements and the quarterly financials.
Telepanel Systems Inc. announces that it has significantly restructured the organization, so that it will be better able to meet its current demands, and move forward with substantially reduced operating costs. The company will continue to operate in North America and Europe, with its operations being further augmented by IBM in terms of sales, marketing, and research & development. The newly focused organization will be structured to best leverage upcoming opportunities and providing continued support for customers while making prudent use of available operating capital. This action will give Telepanel the best possible position to take advantage of future ESL market expansion.
"The further investment and the consolidation of our lenders' debt facilities combined with the IBM inventory investment in February are further evidence of the support that VenGrowth, Royal Bank Capital Partners, IBM, and the Board of Directors have in our continuing efforts to maintain momentum in the ESL market," commented Garry Wallace, President and CEO of Telepanel. "We have made substantial progress in advancing the business case for large rollouts of Electronic Shelf Labels technology and the level of interest in the product is continuing to grow," he added. In addition to our Annual General Meeting we will be arranging information sessions for our investors, so that we can share the enthusiasm and the progress that has been made in the ESL market.
In addition, we have been dealing with price optimisation companies whose new and innovative technology can be leveraged to maximum success through the use of ESLs to execute accurate price changes quickly. As well, we are continuing our efforts to utilize our inexpensive two-way communication system in other commercial applications.
Telepanel is currently investigating a number of strategic and technical alliances that will continue to broaden our overall capabilities. Telepanel can benefit from the technical, marketing and sales synergies of many of the parties that we are in discussion with. By leveraging our capabilities with those of our strategic partners, Telepanel will broaden and deepen our marketing efforts in the ESL industry.
Telepanel is a leader in developing wireless electronic shelf labelling systems for retail stores. Telepanel ESLs are placed on the edge of store shelves to show a product's price and other information. Prices are changed by a radio communications link from the store's product database, to provide rapid, accurate pricing updates.
Telepanel's systems are integrated with the leading 2.4 GHz RF LANs which allows retailers to take advantage of their investment in IEEE-standard in-store RF networks and extend their use to electronic shelf labels.
Telepanel wireless ESLs are installed throughout the United States, Canada, and Europe, with such premier supermarket chains as Adam's Super Food Stores, A & P, Stop & Shop, Loblaws, Big Y, Reasor's, Doll's, Brown's, Stew Leonard's, Grand Union, Wakefern, Berks, Ellington, Port Richmond, Champion, Leclerc, Intermarche, SPAR, and Super U, and at Universal Studios, Hollywood.
This press release includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements do not constitute historical facts and involve risks and uncertainties, including, but not limited to, the possibility that adverse economic or other factors may cause actual results to be materially different than current estimates and projections. Additional detailed information concerning a number of factors that could cause actual results to differ materially from the information contained in this press release is contained in the reports and other documents of Telepanel filed with the Securities and Exchange Commission from time to time.
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CONTACT: In Canada:
Telepanel Systems Inc.
Garry Wallace, 905/477-7877
www.telepanelsystems.com
or
In the US:
Straus Communications
Irving Straus, 212/768-2477 |
