$2.75M financing @ 23.5%/annum!
www2.cdn-news.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FOR FURTHER INFORMATION PLEASE CONTACT:
Delicious Alternative Desserts Ltd.
Mr. Robert Harrison
(905) 662-4934
or
Delicious Alternative Desserts Ltd.
David Murray
(416) 364-6744
The Alberta Stock Exchange has neither approved nor disapproved of
the information contained herein.
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: DELICIOUS ALTERNATIVE DESSERTS LTD.
ASE SYMBOL: DD
MARCH 30, 1999
Delicious Alternative Desserts Ltd. Announces Closing of
$2,750,000 Financing
STONEY CREEK, ONTARIO--Delicious Alternative Desserts Ltd. (the
"Corporation") is pleased to announce the closing today of a
$2,750,000 financing in the form of Series 1 Special Notes issued
to First Ontario Fund, Royal Bank Capital Corporation and Bank of
Montreal Capital Corporation (the "Lenders"). The Series 1
Special Notes are automatically converted upon the filing of final
prospectus into Secured Subordinated Debentures in the aggregate
principal amount of $2,750,000 (the "Debentures") and warrant
certificates constituting, in aggregate, the right to acquire
500,000 common shares of the Corporation (the "Warrants").
Each Warrant entitles the holder to acquire one common share of
the Corporation on the payment of $0.50 and expires four years
from the date of its issuance.
The Series 1 Special Notes and the Debentures bear interest at the
rate of 23.5 percent per annum calculated monthly and payable
quarterly in arrears. Upon conversion of the Series 1 Special
Note, up to 8.5 percent the total interest may be payable in
common shares of the Corporation with the remaining 15 percent
payable in cash. The term of the Debentures is two years and the
Corporation may pre-pay the Debentures at any time without
penalty.
The Series 1 Special Notes are part of a larger financing
involving a proposed issuance of approximately $1,750,000 in
Special Warrants at $0.50 per Special Warrant and the expansion of
the Corporation's senior debt facility.
The total financing will be used in connection with costs incurred
from the renovation of the Corporation's plant in Stoney Creek,
Ontario and an expansion of the Corporation's distribution system.
-30-
|
