Great news today for all you who haven't seen it here it is:
New financing
Pallet Pallet Inc PLT
Shares issued 30,241,611 Jul 11 close $0.18
Mon 14 Jul 97 News Release
Ms Sue Topping reports
The company has entered into commitment letters with Equity Merchant
Banking and its affiliate, Connecticut Bank of Commerce, for new financing
totalling in excess of US$21 million of which approximately US$17 million
will be available at closing.
EMBC has agreed to invest by way of private placement approximately $1.5
million resulting in the issuance of 14,333,333 shares of the company. In
addition, CBC has agreed to extend to the company a receivable purchase
facility in the amount of US$14.5 million and a lease of certain of the
company's tangible personal property and equipment in the amount of US$5.5
million. Together, these facilities will provide sufficient financing to
consolidate and refinance all existing bank lines of credit and
noteholders, some of whose obligations have already matured and are
currently due and payable.
The company has agreed to issue shares as fees for arranging and
establishing the facilities to EMBC (11 million) and to CBC (5 million). In
addition to the fee shares, the company will pay normal cash fees for due
diligence, commitment and closing fees.
The 30,333,333 shares of the company which EMBC and CBC shall receive in
total pursuant to these transactions, will represent approximately 30% of
the outstanding shares of the company. In accordance with the rules of the
TSE, shareholder approval will be sought for the issuance of these shares.
An information circular is being mailed with respect to a special meeting
of shareholders to be held in August which will contain specific terms of
the transactions.
The company anticipates that the closing of the private placement and
facilities will occur on or about August 15 1997, conditional upon, among
other things, shareholder approval, due diligence and applicable regulatory
consents.
The company has agreed that if, prior to the special shareholders meeting
to approve these transactions, the company authorizes, recommends, proposes
or publicly announces its intention to enter into any merger or
amalgamation, consolidation, takeover bid, dissolution or business
combination with any person other than EMBC, CBC or an affiliate of the
company, then the company shall pay to EMBC a fee of US$750,000 and to CBC
a fee of US$250,000. |
