May 21, 2002 - ZTEST ANNOUNCES DEBT FINANCINGS
NORTH YORK, May 21, 2002 - ZTEST Electronics Inc. ("ZTEST" or the "Corporation") (TSXVE - "YZT") wishes to announce that it has completed the placement of a $120,000 Convertible Debenture on the terms as disclosed in the press release on April 3, 2002. This transaction is subject to final approval of the TSX Venture Exchange.
The Corporation also 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 $0.15 of principal amount converted. Each Unit will consist of one (1) common share of ZTEST priced at $0.15 per share and one (1) share purchase warrant exercisable at a price of $0.15 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 625,000 common shares of ZTEST at a price of $0.15 per share for a period of two (2) years.
The terms of both financings are subject to the approval of the TSX 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").
About Permatech Electronics Corp.
Permatech Electronics Corp., a wholly owned subsidiary of ZTEST Electronics Inc. (TSXVE: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:
Flora Wood and Philip Williams
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.