PeakSoft Announces Agreement to Convert Existing 12 Percent Senior Notes to Equity
and Stock Consolidation
BELLINGHAM, WASHINGTON--PeakSoft Corporation (ASE:PKT)
(OTC-BB:PEAFF) today announced that it will seek shareholder and
regulatory approval as required on an agreement to convert its
existing senior notes and accrued interest to equity, repricing of
warrants, a planned private placement, and a reverse
split/consolidation of its stock on a 1- for-8 basis.
PeakSoft is requesting approval of an agreement in principle
between the Company and The Liverpool Limited Partnership and
Westgate International, L.P., entities under common management
with Elliott Associates, L.P., and individuals to convert their
senior notes and interest owing of $2,608,231 CDN ($1,695,350 US)
at a rate of $0.18 CDN per share for a total of 14,490,172 shares,
and to purchase new notes in the aggregate principal amount of
$231,000 CDN ($150,000 US).
In addition, PeakSoft seeks approval of a private placement in the
amount of $154,000 CDN ($100,000 US) priced at $0.18 CDN with a 2-
year purchase warrant of $0.20 CDN.
PeakSoft also seeks approval to reprice 3,620,075 warrants issued
on September 9, 1997 and March 17, 1998 to The Liverpool Limited
Partnership and Westgate International, L.P., entities under
common management with Elliott Associates, L.P. to $0.20 CDN.
PeakSoft is asking for approval of a stock consolidation of the
Company's shares on a 1-for-8 basis after the completion of all
these transactions. Management believes the stock consolidation
is necessary to complete the restructuring of its capitalization
for its pending OTC-BB re-listing.
At the completion of all transactions and the consolidation of its
stock, the Company estimates it will have approximately 4,240,000
shares outstanding on a fully diluted basis. The agreements as
proposed will provide PeakSoft with additional capital of $384,000
CDN ($250,000 US) and reduce the Company's long-term debt by 93
percent.
Management of the Company will remain with the current Board of
Directors.
PeakSoft Corporation is a market leader in the development of
Internet productivity and communication software products.
Publicly traded on the Alberta Stock Exchange (PKT) and pending on
the OTC-BB (PEAFF), PeakSoft is a diversified Internet software
Company headquartered in Bellingham, WA. For more information,
call 888-377-7325, visit the PeakSoft Web site
(http://www.peak.com) or send e-mail to info@peak.com
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
PeakSoft Corporation
Chris Kent
1-888-377-7325
e-mail: chrisk@peak.com
The Alberta Stock Exchange has neither approved nor disapproved of
the information contained herein.
fin-info.com |
