Current Technology Restructures Debt Totalling $1,319,718.94 USD
Tuesday September 30, 8:00 am ET
VANCOUVER, British Columbia, Sept. 30 /PRNewswire-FirstCall/ -- The following was issued today by Robert Kramer, Director, Current Technology Corporation (OTC Bulletin Board: CRTCF - News):
Current Technology Corporation (the "Company") is pleased to announce that it has reached an agreement with the Company's largest shareholder, Keith Denner, to restructure its indebtedness to him. Under the agreement, which has an effective date of September 29, 2008, Mr. Denner advanced the Company an additional $100,000 (all funds USD). When combined with the previous balance of $1,219,718.94, the total amount of the convertible promissory note is $1,319,718.94 (the "Note"). The due date of the Note is January 19, 2010, which is an extension from January 16, 2009. All other terms of the Note remain the same. As consideration for the extension, the Company is issuing Mr. Denner warrants to purchase an additional 5,200,000 shares. The warrants are exercisable at a price of $0.40 per share and expire on the later of December 31, 2013 or the date which is two years after the Note is repaid in full.
The Company has also agreed to provide Mr. and Mrs. Denner a cashless exercise feature on certain of their outstanding warrants, such that all of their outstanding warrants will have a cashless exercise provision, and has further agreed to extend the term of all such warrants to the later of the original expiry date or the date which is two years after the Note has been repaid in full. The Company has also agreed to grant Mr. Denner the right to participate, up to a maximum of 20%, under the same terms and conditions, in any arm's length private placement financing which is not concluded with a strategic partner. Such right will terminate once the Note is repaid in full. Finally, the Company has agreed to pay an extension fee to Mr. Denner of $5,000.
After taking into consideration the foregoing transactions, Mr. Denner owns 16,219,266 common shares (representing approximately 11.85 % of the issued and outstanding shares of the Company) and warrants to purchase an additional 32,748,933 common shares. In the aggregate, after giving effect to the exercise of Mr. Denner's warrants and the conversion of the Note (and prior to the exercise or conversion of any options, warrants or other convertible securities of the Company by any other holder thereof), Mr. Denner would beneficially own under applicable securities law 34% of the deemed outstanding shares of the Company. This percentage will be reduced proportionately if other holders exercise their existing options and warrants previously issued by the Company. All of the foregoing numbers are effective as of September 29, 2008.
The shares and warrants were acquired for investment purposes and Mr. Denner has no present intention to further increase his beneficial ownership of or control or direction over the shares. Mr. Denner may in the future take such actions in respect of his holdings as he deems appropriate in light of the circumstances then existing, including the purchase of additional shares or other securities of the Company through open market purchases or privately negotiated transactions, or the sale of all or a portion of his holdings in the open market or in privately negotiated transactions to one or more purchasers. |
