ZTEST ANNOUNCES PROPOSED DEBT FINANCINGS
NORTH YORK, April 3, 2002 - ZTEST Electronics Inc. ("ZTEST" or the "Corporation") (CDNX - "YZT") wishes to announce that it is offering up to $400,000 in Convertible Debentures to arm's length parties. The Debentures will bear interest at the rate of 8 % per annum payable monthly in arrears and will have a two (2) year term. Each Debenture will be convertible into Units of ZTEST on the basis of one (1) Unit for each $0.16 of principal amount converted. Each Unit will consist of one (1) common share of ZTEST priced at $0.16 per share and one (1) share purchase warrant exercisable at a price of $0.18 until the second anniversary of the issuance of the debenture. ZTEST has agreed to pay a finder's fee of 6% payable in cash in respect of the placement of these debentures to an arm's-length party.
In addition, ZTEST is negotiating to place a $250,000 term loan bearing interest at the rate of 9.25% per annum payable monthly in arrears with a term of three (3) years. ZTEST is offering, as a bonus to the lenders, warrants to acquire up to 550,000 common shares of ZTEST at a price of $0.18 per share for a period of two (2) years.
The terms of both financings are subject to the approval of the Canadian Venture Exchange.
The funds from these financings will be used to provide working capital for ZTEST and to purchase additional equipment for ZTEST's wholly-owned subsidiary, Permatech Electronics Corporation ("Permatech"). Permatech has recently acquired pick-and-place machinery capable of placing advanced electronic components, such as widely used in new products Ball Grid Array (BGA) and micro BGA. This new round of equipment addition will maximise the output of currently operated machines. It will also enhance Permatech's ability to verify placement of BGA components by using sophisticated x-ray equipment not easily accessible to the small and medium size customers.
About Permatech Electronics Corp.
Permatech Electronics Corp., a wholly owned subsidiary of ZTEST Electronics Inc. (CDNX:YZT), is an ISO 9002 certified Electronic Manufacturing Services (EMS) provider founded in 1982. Permatech offering includes Materials Management, Printed Circuit Board (PCB) Assembly, Testing and Design services. Permatech operates from a 20,000 square foot facility in North York, Ontario, Canada. The company serves customers in the Medical, Power, Computer, Telecommunication, Wireless, Industrial and Consumer Electronics markets requiring high quality, quick-turn, small and medium size production runs.
For more information contact Investor Relations:
The issued and outstanding capital of ZTEST is 31,772,210 common shares.
The Canadian Venture Exchange has neither approved nor disapproved of the contents of this press release.
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