VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) - Uniserve Communications Corporation (TSX VENTURE:USS) (the "Company") announces that it has received the approval of the TSX Venture Exchange (the "Exchange") and completed the shares for debt and loan transactions announced on May 31, 2012.
According to Uniserve Chief Executive Officer Mike Schmidt, "These transactions are part of Uniserve's ongoing growth plans. Through the shares for debt transaction and associated write off of legacy debt, we have improved our working capital position by $282,000. The loan provides the Company with much needed working capital to fund Uniserve's expansion in to the Cloud Computing market."
Uniserve has issued 1,190,710 Shares at a deemed price of $0.10 per Share in settlement of outstanding debt in the amount of $161,143 owed to certain creditors pursuant to debt settlement agreements dated for reference May 31, 2012.
Further, the Company has entered into a loan arrangement pursuant to which it will borrow $360,000 (the "Loan") from a related party (the "Lender"). The loan is secured against the assets of the Company, bears 15% per annum interest and is governed by the terms and conditions of a loan agreement (the "Loan Agreement") dated May 31, 2012 (the "Loan Date").
In consideration for the Loan, the Company will issue to the Lender 1,200,000 non-transferable common share purchase warrants (the "Warrants"), with each Warrant entitling the holder to purchase one common share of the Company at the exercise price of $0.10 per share. The Warrants will be subject to a four month hold period from the date they are issued and will be cancelled on a pro-rated basis against capital repayments on the Loan, starting six months from the date of issue.
Uniserve Communications Corporation (TSX VENTURE:USS) is an industry leader in the integration and delivery of voice and data services over multiple IP networks directly or through wholesale partnerships to businesses and retail consumers throughout Canada. Learn more at www.uniserve.com or at www.sedar.com.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
Michael Schmidt, CEO
Management has prepared this release and no regulatory authority has approved or disapproved the information contained herein. The statements contained in this news release that are not historical facts are forward looking statements. Such statements are based on management's estimates, assumptions and projections using available information. Uniserve cautions that actual financial results could differ materially from the current expectations due to a number of factors.
Neither TSX Venture Exchange nor its Regulations 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.