MONTREAL, Dec. 23, 2014 /CNW Telbec/ - Extenway Solutions
Inc. ("Extenway") (TSX Venture Exchange: EY) is pleased to
announce the closing, as of December 22,
2014 (the "Closing Date"), of a first tranche private
placement of 6,250,000 common shares at a price of $0.08 per share (the "Common
Shares") for gross proceeds of $500,000 (the "First Tranche"). The Common
Shares were issued to Fonds COTE 100 REA II pursuant to the
"accredited investor" exemption under Regulation 45-106
respecting Prospectus and Registration Exemptions (Québec).
Extenway is further pleased to announce that it has received
letters of intent and written expression of interest from
additional accredited investors to complete a second tranche of the
private placement at an issue price of $0.08 per share (the "Second Tranche").
The gross proceeds of the Second Tranche, together with the amount
of outstanding indebtedness that Extenway anticipates converting to
Common Shares at a price of $0.08 per
share pursuant to certain shares for debt transactions is expected
to be in the $3,000,000 range.
Completion of the Second Tranche remains subject to a number of
conditions, including, but not limited to, completion of shares for
debt conversions, for which Extenway has already obtained the
agreement in principle of the holders owning more than 50% of the
indebtedness under the outstanding debentures (the "Majority
Debentureholders"), the acceptance of the TSX Venture Exchange
(the "Exchange") in respect of such debt conversion and of
the Second Tranche (collectively, the "Transactions"), and
to standard closing conditions for transactions of such a nature.
It is anticipated that the Transactions would close on or about the
third week of January 2015.
"This is all excellent news as we have reached two objectives
within the same transaction. Firstly, we have completed a first
tranche of the financing of a significant amount. Secondly our
understanding with the Majority Debentureholders is expected to
giving us additional financial flexibility in the short and long
term. All of this bodes well for the future of Extenway and they
are the first milestones of our long term goal to secure the
required financing for our business in order to allow us to fully
concentrate on our main asset, our solutions, and on the
development of Extenway", said John
McAllister, President and CEO of Extenway.
The proceeds of the First Tranche will be used for working
capital purposes.
IRR Capital Inc., an exempted market dealer, acted as finder in
connection with the First Tranche and received a finder's fee
consisting of a cash fee of $15,000
and 187,500 common shares of Extenway at a deemed price of
$0.08 per share (the "Finder's
Fee Shares").
The Common Shares and Finder's Fee Shares (collectively, the
"Shares") are subject to a four-month plus one-day hold
period from the Closing Date, expiring on April 23, 2015, pursuant to securities
legislation and the policies of the TSX Venture Exchange (the
"Exchange"). The Shares 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 U.S. persons, absent such registration
or an exemption from registration. The First Tranche remains
subject to the final approval of the Exchange.
Recent Developments
On December
15, 2014, Extenway announced the signing of a contract with
Mount Sinai Hospital in Toronto,
Ontario to install bedside terminals and provide
"infotainment" services to 350 beds in the hospital facility.
Including these recently announced terminals, Extenway now has
5,335 bedside terminals signed and selected by various
hospitals.
In addition, further to the updates announced on September 25, 2014, Extenway wishes to announce
the following current developments:
Current Tenders
Extenway has submitted offers of
services to approximately ten hospitals and responded to a number
of calls for tenders in the provinces of Québec and Ontario. These outstanding offers and tenders
represent potential contracts for an additional 4,300 bedside
terminals. Supplier selections are expected to be made in the
beginning of 2015.
Future Tenders
Extenway plans to respond to additional
tenders in the forthcoming twelve months, representing potential
contracts for the installation and services of an additional 8,000
bedside terminals.
About Extenway Solutions
Extenway Solutions 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 medical 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
extenway.com or follow us on Twitter @Extenway.
Disclaimer
Certain statements that appear in this news
release constitute forward-looking statements. These
forward-looking statements relate to future financial conditions,
results of operations or business of Extenway Solutions Inc. These
statements may be current expectations and estimates about the
markets in which Extenway Solutions Inc. operates and management's
beliefs and assumptions regarding these markets. These statements
involve significant 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 Solutions
Inc. 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 the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Extenway Solutions Inc.