Mr. Michael Ickman reports
VOTI DETECTION AMENDS CREDIT FACILITY, ISSUES SHARES IN PAYMENT OF INTEREST ON OUTSTANDING DEBENTURES AND GRANTS RSUS
Voti Detection Inc. has entered into an amended credit facility agreement, which amends the terms of a revolving credit facility agreement entered into with Espresso Capital Ltd. on Jan. 8, 2019, and as subsequently amended, and pursuant to which the company has borrowed an amount of $3,650,000 as of today's date. Under the amended facility agreement, the company will have to repay $1-million of the unpaid advances in 12 monthly instalments starting Dec. 31, 2020 (under the original agreement, such amount was due on April 30, 2020) and the company will have to maintain a net working capital of $8-million (under the original agreement, the company had to maintain certain debt-to-market-capitalization-and-working-capital ratios). Amounts drawn on this facility bear interest at 15.25 per cent per annum, and the facility matures on June 30, 2022. The calculation of the authorized credit limit of the facility has not changed from the original agreement and is based on a multiple of gross profit less debt in priority. The maximum authorized credit limit is $7.5-million. In consideration for entering into the amended facility agreement, the company will issue to Espresso warrants exercisable for a period of seven years to purchase 285,714 common shares of the corporation at the price of 70 cents per share with an option for cashless exercise. Voti and Espresso deal at arm's length.
Voti also announces its intention to issue 130,606 common shares of the company at a deemed price of 60 cents per common share in payment of an aggregate of $78,361 in interest owing on the company's 10 per cent senior unsecured convertible debentures due on June 30, 2020. Under the terms of the debentures, the company has the option to pay the interest on the debentures in either cash or common shares on the terms set forth in the debentures. The issuance of common shares in payment of interest on the debentures is subject to the acceptance by the TSX Venture Exchange. The common shares issued in payment of interest on the debentures will be subject to a four-month hold period.
The company also announces that the board of directors has today granted a total of 880,000 restricted share units to three senior executive officers and one employee of the corporation under its restricted share unit plan.
About Voti Detection Inc.
Voti Detection, headquartered in Montreal, Que., and listed on the TSX Venture Exchange, is a leading-edge Canadian technology company that develops latest-generation X-ray security systems based on 3-D perspective technology.
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