Preventia Exchanges 1.1 Million Shares of Preferred Stock for FINs Worth $8.25 Million
TORONTO--(BUSINESS WIRE)-- Preventia, Inc. (OTCBB: PVTA) announces the purchase of $8,250,000 (face value) of Fixed Income Notes (FINs) from an institutional investor at a purchase price of $7,672,500. Under the agreement, PVTA is allowed to pay the purchase price in preferred stock. PVTA is in the process of obtaining shareholder approval to create and issue the stock. As part of the agreement, Preventia will be issuing 10 million warrants for common shares, at an exercise price of $0.79 per share.
The Series B, 8 year 8.5% Secured Fixed Income Notes (FINs) are issued by Quantus Income Opportunities Corp. (QIOC). Transfer of the QIOC FINs to Preventia is imminent.
Robert Stevens, Preventia CEO and President states, "This latest transaction should certainly bolster our financial position. We continue to see an increasing demand from a variety of investor groups across the global markets for more yield and income. Building on continued requests for more innovations in this time of very low interest rates, we expect to further secure our niche in the financial products market. PVTA looks forward to introducing a series of unique instruments designed to increase yield returns to investors."
"This new financing opportunity is in lieu of the previously announced deals with the Magna Group, which were not completed in light of the Board's opinion that the Magna deals were not in PVTA's long term best interests," notes Mr. Stevens.
About Preventia Inc.
Preventia Inc., a company incorporated pursuant to the laws of the State of Nevada and headquartered in Toronto, Ontario, Canada, works with corporate clients to develop, market and distribute financial products for dematerialization and electronic trading and operates an electronic trading platform with respect to the foregoing. www.preventiatrading.com
Forward Looking Statement
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements related to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned or required capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of, the company. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, and domestic and global economic conditions.
Emerson Gerard Associates
Jerry Jennings, 561-881-7318
KEYWORDS: North America Canada
The article Preventia Exchanges 1.1 Million Shares of Preferred Stock for FINs Worth $8.25 Million originally appeared on Fool.com.
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