ZTEST Announces Completion of $150,000 Private Placement and $150,000 Convertible Debenture Financings
TORONTO, ONTARIO--ZTEST Electronics Inc., ZTST - CDN, ("ZTEST") wishes to announce that it has placed a $150,000 convertible debenture with an arm's-length private placee. The convertible debenture bears interest at 12% per year and will be due and payable on October 31, 1999 which can be extended by the debenture holder to January 31, 2000. The debenture is convertible into units of ZTEST at the rate of one (1) unit for each $1.50 of principal amount of debt converted. Each unit consists of one (1) common share of ZTEST and six-tenths (6/10ths) of a share purchase warrant with each full warrant entitling the holder to acquire one (1) additional common share of ZTEST at a price of $1.85 until March 1, 2001.
In addition, ZTEST is pleased to announce that it has completed a private placement for $160,000 with an arm's-length party. The private placee subscribed for 100,000 Units of the Corporation. Each Unit of the Corporation consists of one (1) common share of the Corporation priced at $1.60 per share and eight-tenths (8/10ths) of a share purchase warrant with each full warrant entitling the holder to acquire one (1) additional common share of the Corporation at a price of $2.00 for a period of three (3) years following the closing of the transaction.
The proceeds from both financings will be used for working capital.
ZTEST offers Strategic Partner services in electronic design, development and manufacturing to emerging high tech companies in return for long-term manufacturing contracts, fees for services and equity positions.
The current outstanding capital of ZTEST is 15,762,316 common shares.