Extenway Announces Third Tranche of Private Placement

Extenway Solutions Inc. ("Extenway") (TSX VENTURE:EY) is pleased to announce
that it anticipates closing a third tranche financing (the "Third Tranche") of
convertible debentures (the "Convertible Debentures") as part of its private
placement of common shares and Convertible Debentures for aggregate gross
proceeds of up to $3,800,000 (the "Offering"), the first and second tranches of
which were respectively completed on September 11th and 17th, 2013, for combined
aggregate gross proceeds of $590,000.  


Extenway is further pleased to announce that it has received a signed
conditional offer from a major institutional fund manager, pursuant to which the
fund is expected to invest $1 million in the Offering subject to certain terms
and conditions. Additional investors have committed to invest $710,000 in the
Offering, subject to the terms and conditions set out herein. The Third Tranche
is expected to close on or about February 25t, 2014 (the "Closing Date"). 


The Convertible Debentures will be unsecured, will mature on August 31, 2017 and
will bear an annual compounded interest rate of 12%. 


The Convertible Debentures will be convertible into common shares of Extenway
(the "Common Shares") at a conversion price of $0.13 if the conversion is
effected no later than at 5:00 pm on April 29, 2016, or $0.17 if the conversion
is effected thereafter, subject to customary adjustment provisions. 


In the event that, at any time after August 31, 2015, (a) Extenway issues Common
Shares at an price per share equal to or greater than $0.25 (subject to
customary adjustments), or (b) the Current Price (as defined in the Convertible
Debenture) of its Common Shares is greater than $0.30 (subject to customary
adjustments), Extenway will be entitled to buyback the Convertible Debentures
prior to their maturity date for a purchase price equal to the principal thereof
plus all accrued and unpaid interest thereon. The buyback right will be
exercisable pursuant to a prior written notice of at least 30 days prior to the
closing of same. 


Upon the occurrence of a liquidity event (which includes a merger, an
amalgamation, a reorganization, the sale of shares or any other transaction
resulting in a change of control of Extenway, or the sale of all or
substantially all of the assets of Extenway) (a "Liquidity Event") pursuant to
which:




--  (a) the conversion price of the Convertible Debentures is lower than the
    price per Common Share of Extenway determined pursuant to such Liquidity
    Event (the "Offered Price"), the Convertible Debentures will be
    automatically converted into Common Shares of Extenway at the applicable
    conversion price;
    
    
--  (b) the conversion price of the Convertible Debentures is equal to or
   greater than the Offered Price, Extenway shall be entitled to cancel the
    Convertible Debentures by paying to the holders thereof an amount equal
    to the sum of: (a) the outstanding principal amount of such Convertible
    Debentures, (b) the accrued and unpaid interest thereon, and (c) a 3%
    penalty calculated on the outstanding principal amount of such
    Convertible Debentures. 



The proceeds of the Offering will be used for working capital purposes. The
private placement is subject to compliance with applicable securities
legislation and to the approval of the TSX Venture Exchange.  


It is anticipated that a finder's fee in the amount of $31,300 will be payable
to a registered exempt-market dealer in connection with certain placements. The
exempt-market dealer will also be entitled to 100,000 share purchase warrants to
purchase Common Shares of Extenway at a purchase price of $0.13 per Common Share
if exercised no later than at 5:00 pm on April 29, 2016, or $0.17 per Common
Share if exercised thereafter. The share purchase warrants will expire on August
31, 2017. 


All Convertible Debentures and all underlying Common Shares which may be issued
to purchasers under the Offering will be subject to a four-month plus one-day
hold period from the Closing Date, pursuant to securities legislation and the
policies of the TSX Venture Exchange. The Convertible Debentures and all
underlying Common Shares offered in the Offering have not been nor will they be
registered under the United States Securities Act of 1933, as amended, or state
securities laws, and may not be offered or sold in the United States or to an
account for the benefit of US persons, absent such registration or an exemption
from registration.


About Extenway Solutions Inc.

Extenway is a supplier of client-focused solutions for the healthcare industry.
Services offered by Extenway include interactive television, beside terminals
for patients, internet, entertainment, content integration, advertising,
education and integrated solutions. Extenway allows organizations to optimize
management and coordination of human interactions as well as communications,
information and coordination. For further information, please visit
www.extenway.com or follow us on Twitter @Extenway.


Disclaimer - Safe Harbour Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking
statements. These forward-looking statements relate to the future financial
conditions, results of operations or business of Extenway. These statements may
be current expectations and estimates about the markets in which Extenway
operates and management's beliefs and assumptions regarding these markets. These
statements are subject to important risks and uncertainties which are difficult
to predict and assumptions which may prove to be inaccurate. The results or
events predicted in forward-looking statements may differ materially from actual
results or events. Extenway disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. In particular, forward-looking statements do not
reflect the potential impact of any merger, acquisitions or other business
combinations or divestitures that may be announced or completed after such
statements are made. 


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
John McAllister
President and CEO
Extenway Solutions Inc.
514-694-1916


Marie-Helene d'Entremont
Zone franche
514-371-5715, ext. 204
mhdentremont@zonefranche.ca
Extenway Solutions Inc. (TSXV:EY)
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