Denbridge Capital to repay its 6% Convertible Debentures
TORONTO, May 14 /CNW/ - Denbridge Capital Corporation announced that it
has not yet repaid its US$5,055,000 6% convertible debentures. Denbridge has
been placed in this position, because a transaction which was supposed to have
closed prior to the April 30, 1999 maturity of these debentures has not yet
been consummated. The Company has been attempting to close a transaction with
an international high-tech electronics company regarding the purchase of an
interest in Denbridge Digital Limited, the Company's international traffic
management systems subsidiary.
Under the terms of the trust indenture, Denbridge Capital has a minimum
of 30 days to rectify this situation. The Company is of the belief that it
will be able to conclude a transaction with a third party who already has an
interest in Denbridge Digital within that time period. On July 31, 1998, the
Company received a bridge financing consisting of $3 million in cash and a $5
million bonding facility from B & H Electronics (H.K.) Ltd., an investment
vehicle for Horst J. Pudwill. Mr. Pudwill is a Director and former Chairman of
NovAtel Inc. The Company has received an overture from B & H Electronics to
facilitate another bridge loan, to be repaid from the proceeds of the intended
sale of an interest in Denbridge Digital. Denbridge Digital is currently not
affected by this situation and operations continue normally. Denbridge
Digital's assets are not pledged as security for the debentures.
Denbridge Capital has appointed Brahm Gelfand, Howard Levine and Michel
Menard of Lapointe Rosenstein to act on its behalf in its discussions with the
debenture holders.
Denbridge Capital trades on The Toronto Stock Exchange under the symbol
DNB.
(see more about Denbridge Digital at its website -
www.denbridgedigital.com)
(see all of Denbridge's news releases on Canada NewsWire's website -
www.newswire.ca)
-30-
For further information: Neil Raymond, Chairman, (514) 281-0481; Jamie
Macintosh, V.P., Corporate Development, (416) 862-7444; Vanessa Morgan,
Secretary-Treasurer, (416) 862-7444; denbridge@sympatico.ca |
