May 28, 1999 - ZTEST Arranges Private Placement
TORONTO, ONTARIO--ZTEST Electronics Inc., ZTST - CDN, ("ZTEST") wishes to announce that it has arranged one private placement for $160,000 with an arm's-length party. The private placee will subscribe for 137,931 Series B Preferred Shares (the "Shares") of the Corporation on the basis of one (1) Share for each $1.16 of funds advanced. The Shares are non-voting, pay monthly dividends at the rate of 8 percent per annum and are convertible by the holder at the rate of one (1) common share for each Share converted for the first eighteen months, one (1) common share for each 1.2931 Shares converted for the next eighteen months and one (1) common share for each 1.4224 Shares converted for the final two years. The Shares are redeemable after five (5) years at the rate of $1.16 per Share.
The funds received from this private placement will be applied to working capital.
In addition to its proprietary line of Automatic Test Equipment, 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 15,376,316 common shares.