TORONTO, ONTARIO--(Marketwire - July 12, 2012) - Advantex Marketing International Inc. (CNSX:ADX) (Advantex or the Company) announced today that, pursuant to a debt prepayment agreement, it has prepaid $310,033 in the aggregate principal amount of $1,000 face value secured non-convertible debentures of Advantex (the Marketing Debentures) plus $12,129.51 of accrued and unpaid interest thereon and that its subsidiary, Advantex Dining Corporation (the Subsidiary), pursuant to a second debt prepayment agreement, has prepaid $66,000 in the aggregate principal amount of $1,000 face value secured non-convertible debentures of the Subsidiary (together with the Marketing Debentures, the Debentures) plus $303.78 of accrued and unpaid interest thereon. The Debentures were initially issued pursuant to concurrent private placements completed in May 2011.
The Debentures were acquired from a Toronto-based portfolio management firm, on behalf of its managed accounts. As the private placement constitutes a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") the Company has relied on the financial hardship exemption from the formal valuation and minority approval requirements of such instrument. As the transaction will reduce the Company's debt and annual interest payments thereon, the board of directors of the Company unanimously determined that the transaction will improve the financial position of the Company and that the terms of the transaction are reasonable in the circumstances.
Concurrently with the debt prepayment, 4,517,621 common share purchase warrants of the Company (each a Warrant) were surrendered to the Company. The number of Warrants surrendered is proportionate to the number of Debentures prepaid.
About Advantex Marketing International Inc.
Advantex is a specialist in the marketing services industry. Advantex partners with Canadian Imperial Bank of Commerce (CIBC), and Aeroplan Canada Inc. (Aeroplan). On a combined basis, Advantex has contractual marketing access to more than five million Canadian consumers with above-average personal and household income. The Company's merchant partner base currently consists of over 1,250 merchants operating restaurants, golf courses, independent inns, resorts and selected hotels, spas, retailers of men's and ladies fashion, footwear and accessories, retailers of sporting goods, florists and garden centres, book and newspaper stores, health and beauty centres, and gift stores, many of which are leaders in their respective categories.
Advantex is traded on the Canadian National Stock Exchange under the symbol "ADX". For additional information on Advantex, please visit www.advantex.com.