The following news release concerns financing announced yesterday.
FOOTMAXX HOLDINGS INC.
Number of Common Shares Issued to Date - 34,766,224
CANADIAN DEALING NETWORK SYMBOL: FTMX
FEBRUARY 16, 1999
Footmaxx Holdings Inc. - 5 Million Dollar Private
Placement
TORONTO, ONTARIO--Footmaxx Holdings Inc., ("Footmaxx"), North
America's leading supplier of corrective foot orthotics using
advanced computer technology, wishes to announce:
Footmaxx entered into an exclusive arrangement with Taurus Capital
Markets Ltd. of Toronto Canada for the purpose of raising $5.0
million in new capital for the company. The participants are
VenGrowth Investment Fund Inc., Royal Bank Capital Corporation and
Working Ventures Canadian Fund Inc. The special warrant financing
is a 10 percent convertible debenture, convertible at $.50
expiring September 30, 2000. The financing closed today.
Footmaxx proposes to use the net proceeds of the offering to
continue to increase its manufacturing capacity in the U.S.A., to
continue to support its scientific research and information
technology, and for the repayment of debt and working capital
purposes.
To facilitate the new financing, and to help to preserve the
company's cash flow as it enters a critical high growth phase, the
company's existing debenture holders have agreed to accrue their
interest for the balance of the existing debentures' term at which
time they convert at $.60. Interest on the new debentures will
also accrue and be payable upon maturity.
Footmaxx produces and globally markets high quality,
state-of-the-art foot orthotics. Footmaxx's proprietary software
uses advanced computer techniques to produce individually
prescribed and technologically superior foot orthotics which
reduce foot, knee, hip and lower back pain and enhance both the
comfort and performance level of the wearer.
|
