TORONTO, ONTARIO--(Marketwired - Mar 31, 2017) - Advantex Marketing International Inc. (CSE:ADX) (ADX.CN) (CNSX:ADX) (Advantex), a specialist in marketing loyalty-reward programs, today announced that it has received approval from the requisite holders of its secured non-convertible debentures (the Debentures) issued in December 2013 to extend the maturity date of the Debentures to June 30, 2017 from March 31, 2017. It is anticipated that there will be breaches of financial covenants contained in the Debentures as at March 31, 2017 which have not been waived by the holders of the Debentures.
Interest from March 31, 2017 to June 30, 2017 will continue to accrue and be paid at the interest rate provided in the Debentures on the maturity date.
Advantex and the requisite holders of Debentures are discussing compensation attached to the extension.
Advantex continues to be assisted by its exclusive financial advisor Trapeze Capital Corporation in its efforts to refinance the Debentures and seek growth funds to capitalize on expansion opportunities.
As the extension may constitute a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (MI 61-101), Advantex has relied on the financial hardship exemption from the formal valuation and minority approval requirements of MI 61-101. As the extension will extend the repayment of the Debentures, the Board of directors of Advantex unanimously determined that the extension will improve the financial position of Advantex and that its terms are reasonable in the circumstances.
Advantex provides specialized marketing programs that enable members of affinity groups to earn frequent-flyer miles and other loyalty rewards through purchases at participating merchants.
Through our partnerships with Aeroplan, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Caesars Entertainment, we have contractual access to millions of consumers with above-average personal and household income. We also have partnerships with about 1,200 merchants in Canada and the US.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information, go to www.advantex.com.
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the future business and operations of Advantex, including relating to repayment of Debentures, the payment of interest, amount and nature of compensation payable and outcome of efforts to recapitalize. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. The business and operations of Advantex described herein is dependent on a number of factors and is subject to a number of risks and uncertainties. Factors that could cause actual results to differ materially include those listed under "Working Capital and Liquidity Management", "General Risks and Uncertainties" and "Economic Dependence" in Advantex's Management's Discussion and Analysis for the six months ended December 31, 2016.
The statements in this news release are made as of the date of this release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and Advantex undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.