Press Release - New Terms and Conditions for Thomson Kernaghan Financing
Here's the big difference in this financing. In the past, our financing with TK has always been on a "look forward" basis. That means that we would contact TK to draw down some of the financing and the price would be based on the average of the next 10 trading days.
The new financing is on a "look back" basis. This time when we phone TK to draw down some money, the price is based on the average of the previous 3 days of trading.
Also, keep in mind that TK never knows when we're going to request some money. We'll still be using this money as we did in the past, i.e. drawing down as needed. However, we are negotiating with other groups and TK knows this.
JAWS TECHNOLOGIES INC. MODIFIES AND EXPANDS DEBENTURE AGREEMENT WITH THOMSON KERNAGHAN
Calgary, Alberta, May 3, 1999 - JAWS Technologies Inc. (NASD-OTC BB: "JAWZ"), a provider of the best in information security technologies and practices, has modified the terms and expanded the size of its credit facility with Thomson Kernaghan & Co. Ltd. of Toronto, Canada, enabling JAWS Technologies to expand its suite of product and service offerings.
"JAWS has secured a substantial financial commitment from Thomson Kernaghan & Co.," states Robert Kubbernus, CEO, JAWS Technologies Inc. "With Thomson Kernaghan, we have moved our company to the next level in both financial and operational terms. Specifically, Thomson Kernaghan has agreed to provide us with a $5 million credit facility with much improved terms and conditions including: first, a fixed conversion price; second, a finite amount of potential dilution to shareholders upon conversion of the debentures to equity; and third, an increase in the size of the facility to assist us in meeting our aggressive growth plans. We are pleased with these modified terms and with Thomson Keranaghan's continued support, we are confident of achieving our growth objectives this year".
"We have developed a solid understanding of the company's products and services. We are extremely excited about JAWS' business potential in what has fast become an incredibly dynamic market," states Robert Wilson, Executive Vice President Capital markets at Thomson Kernaghan. "The changes to our debenture agreement with JAWS Technologies reflects our strong belief in the company and the direction in which management is taking the business. The management team has demonstrated to us that the company is building the appropriate infrastructure, technical expertise, and marketing and sales capabilities to deliver its winning combination of security products and services to the marketplace. Robert (Kubbernus) and his team have built a solid foundation to their business and we look forward to seeing them implement their plan in the months ahead".
About Thomson Kernaghan
Thomson Kernaghan & Co. Ltd. was originally established in Toronto, Canada, in 1949, when E.B. Kernaghan, F.C. Wooley and M.A. Thomson merged with Averdon Pardoc & Co., a firm that had held a seat on the Toronto Stock Exchange since 1912. Thomson Kernaghan is one of the oldest privately-owned investment dealers in Canada, providing a wide range of brokerage services to its corporate, institutional and retail clients. For more information about Thomson Keranaghan's investment banking services, contact Robert Wilson at (416) 860-8800 or toll free at (800) 216-4398.
About JAWS Technologies
JAWS Technologies, Inc. (NASD-OTC BB: "JAWZ") is dedicated to the development and integration of information risk management strategies for secure business practices on a global scale. JAWS Technologies offers an extensive security consulting practice that addresses explicit business requirements. The JAWS IT Security Practice, performed by a team of high caliber security experts, encompasses a robust series of IT audit routines. JAWS Technologies is at the forefront of the security industry with uncomprimised security technologies. The sophistication of proprietary security technology solutions coupled with leading edge packaged data encryption software products provides JAWS clients fast, strong and easy-to-use security management tools. For more information, visit the company's web site at jawstech.com. Forward all investment inquiries to invrel@jawstech.com or call 1-888-301-5297.
Forward-looking statements and comments in this press release are made pursuant to safe harbor provisions of the Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the companies to complete the transaction and enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks may be further discussed in periodic reports and registration statements to be filed by the Company from time to time with the Securities and Exchange Commission in the future.
JAWS TECHNOLOGIES INC. (NASD-OTC BB: "JAWZ")
1013 17th Avenue SW / Calgary, Alberta T2T 0A7
Phone (403) 508-5055; (888) 301-5297 / Fax (403) 508-5058
Barrie Einarson
Director Investor Relations
JAWS Technologies Inc.
1-888-301-5297
1-403-508-5055
Hours: 8:00AM - 5:PM MST
Contact me @ mailto:invrel@jawstech.com
Website: jawstech.com
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