Pallet Pallet Inc. issues convertible debentures
DALLAS, May 18 /CNW/ - (All figures expressed in Canadian dollars) Pallet
Pallet Inc. (''PPI'') announced that it has issued by private placement four
convertible secured debentures in the amounts of $211,700, $211,700, $282,260
and $653,340, convertible into 5,292,500, 5,292,500, 7,056,500 and 16,333,500
common shares of PPI, respectively, to F. Ross Walpole (''Walpole''),
International Pallet LLC (''International Pallet''), Equity Merchant Banking
Corporation, L.C. (''EMBC'') and Equity Funding Group, L.C. (''EFG''),
respectively, at a conversion price of $0.04 per share. The conversion of the
convertible debentures is subject to shareholder approval. Walpole is a
principal of EMBC. International Pallet is a company owned by Corbett Lenz and
Stacie Daley. Both Walpole and Mr. Lenz are directors of PPI.
Walpole currently owns 16,305,280 common shares of PPI, or 14.49% of the
issued and outstanding shares of PPI while EMBC currently owns 27,762,097
common shares of PPI, or 24.67%. Neither International Pallet nor EFG
presently own common shares of PPI. Assuming that shareholders approve the
conversion of the convertible debentures, and that these convertible
debentures and all of the other outstanding convertible debentures are
converted, Walpole will own 35,166,931 common shares of PPI, or 19.93% of the
issued and outstanding shares, International Pallet will own 16,478,638 common
shares of PPI, or 9.34% of the issued and outstanding shares, EFG will own
16,333,500 common shares of PPI or 9.26% of the issued and outstanding shares,
and EMBC will own 37,884,597 common shares of PPI, or 21.47% of the issued and
outstanding shares.
The convertible debenture was acquired by Walpole for investment
purposes. Walpole has no present intention to increase his beneficial
ownership in PPI (other than pursuant to the conversion of debentures) but
reserves the right to do so depending on the price and availability of PPI
shares, future developments in PPI's business and prospects and general
economic conditions. EMBC has no present intention to increase its beneficial
ownership in PPI (other than pursuant to the conversion of the debenture) but
reserves the right to do so depending on the price and availability of PPI
shares, future developments in PPI's business and prospects and general
economic conditions.
Currently there are 112,523,426 common shares of PPI issued and
outstanding. The proceeds from the private placement will be used to fund the
operating requirements of PPI.
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For further information: Timothy Fussner, Investor Relations, Pallet
Pallet Inc., Telephone: (905) 279-5581, Facsimile: (905) 270-7100
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