Q-Media Special Warrant Buyback
Q-Media Services Corporation today announced the Company has
reduced future dilution of its common shares by agreeing to
purchase US$2 million in special warrants issued as part of the
purchase of PAC Services. The purchase and planned cancellation
of the 1,139,440 warrants will reduce the Company's fully
diluted shares by 6%.
The warrants, which were exercisable into common shares of
Q-Media, are being purchased by the Company at their deemed
value of $2.50 each. The purchase was facilitated by US$2
million in debt financing from the Company's US bank.
Robert M. Lawrie, President, said the buy back is beneficial as
it reduces future dilution to Q-Media shareholders by some 6%
without impacting the liquidity of the company's shares or
substantially impacting working capital. The vendors of PAC
will continue to hold 273,466 shares of Q-Media.
The new number of fully diluted shares will be 16.9 million,
down from 18.0 million previous to the buy back. The shares
outstanding will increase to 10.7 million from 10.4 million.
Q-Media Services Corporation is a leading outsourced service
provider to the growing software industry. Its full range of
services include software replication (CD-ROM and other media),
packaging solutions, warehousing and inventory management, and
order fulfillment. It operates regional manufacturing
facilities in close proximity to customers in North America's
major software growth areas: Vancouver, BC; Seattle,
Washington; San Jose and Irvine, California, and Austin, Texas.
Shares of Q-Media Services Corporation are traded on the
Toronto Stock Exchange under the symbol (QMS). US SEC
exemption: 12g3-2(b) 82-3761.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Marla Gale or Jon W. Kieran,
Investor Relations
(416) 868-1079
Hume, Kieran Inc.
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e-mail, please advise Stefanie Thompson
(stefanie@humekieran.on.ca). |
