TORONTO, Nov. 20 /CNW/ -- Multimedia Nova Corporation (TSX-V: MNC.A) (the "Corporation") is pleased to announce it has received TSX Venture Exchange ("TSXV") acceptance to complete the previously announced non-brokered shares for debt private placement to issue Class A subordinated voting shares (the "Class A Shares") at a price of $0.25 per share. The issuance of the Class A Shares is being completed pursuant to agreements made by the Corporation with participating employees and certain trade payable suppliers of the Corporation (collectively, the "Debt Settlement Agreements"). No bonus, finder's fee or commission is being paid in connection with the Debt Settlement Agreements.
Pursuant to the Debt Settlement Agreements, the Corporation immediately issues 1,818,298 Class A Shares at a share price of $0.25 per Class A Share, in order to settle $454,584.69 of debt owing by the Corporation to the participating employees and trade payable suppliers as of September 30, 2009. The Corporation will use the proceeds pursuant to the Debt Settlement Agreements to reduce accounts payable and to improve its working capital position. All securities issued pursuant to the Debt Settlement Agreements are subject to a four (4) month hold period that will expire on March 21, 2009.
Prior to the issuance of the Class A Shares under the above-noted Debt Settlement Agreements, the Corporation had 6,264,052 Class A Shares outstanding. Upon the issuance of the Class A Shares contemplated by the Debt Settlement Agreements, the Corporation will have 8,082,350 Class A Shares outstanding.
The TSXV has also tentatively approved a shares for services plan which will allow the Corporation to issue, sometime shortly after December 31, 2009, approximately 481,010 Class A Shares to be issued at an approximate subscription price of $0.25 per share for approximate subscription proceeds of $120,252.50, subject to final TSXV acceptance, representing the total estimated amount of indebtedness that will be owing to the participating employees for the period from October 1, 2009 to December 31, 2009. The final number of Class A Shares to be issued, the subscription price of such Class A Shares and the aggregate subscription proceeds from the issuance of the Class A Shares for the period from October 1, 2009 to December 31, 2009 will be determined shortly after December 31, 2009, when the Corporation files a TSXV Form 4E - Shares for Debt Filing Form (the "Form 4E") with the TSXV for that period. In accordance with TSXV Policy 4.3 - Shares for Debt, the deemed price per Class A Share for these issuances will depend on the current market price at the time of either the issuance of a press release or the filing of the Form 4E, and such price shall be subject to TSXV acceptance.
Multimedia Nova Corporation is an integrated communications enterprise based in Toronto, Ontario.
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