December 20, 2001 - ZTEST ANNOUNCES PROPOSED DEBENTURE FINANCING
NORTH YORK, December 20, 2001 - ZTEST Electronics Inc., YZT-CDNX, ("ZTEST"), wishes to announce that it is offering up to $300,000 in Convertible Debentures to arm's-length and non-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 $0.125 of principal amount converted. Each Unit will consist of one (1) common share of ZTEST priced at $0.125 per share and one (1) share purchase warrant exercisable until six months from the conversion of the debenture, at a price of $0.125 if converted within the first twelve months of the term of the debenture or at a price of $0.15 if converted within the last twelve months of the term of the debenture. The funds from the financing will be used to provide working capital for ZTEST. The financing is expected to close upon the receipt of conditional approval from the Canadian Venture Exchange.
About ZTEST Electronics Inc.
ZTEST Electronics Inc. was founded in 1986 to develop, manufacture and market state-of-the-art electronic test equipment. In August 2000, ZTEST acquired 60% of Permatech Electronics Corporation, an ISO 9002 certified Electronic Manufacturing Service (EMS) Company with a 17-year operating history. In September 2001, ZTEST announced its intention to complete the purchase of the remaining equity of Permatech. Once the transaction is completed, the combined entity will be positioned as a turnkey EMS provider offering Materials Management, Printed Circuit Board (PCB) assembly, Quality Assurance, Testing and Shipping services. The company will focus on delivering high quality and quick turnaround for small and medium size production.
The current issued and outstanding capital of ZTEST is 24,071,167 common shares.
For further information, contact:
Mr. Ted Drzazga President & CEO ZTEST Electronics Inc.
Tel. (416) 297-5155 ext. 102
or visit our web site at http://www.ztest.com.
THE CANADIAN VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.