Health & Fitness
Health and Fitness
Health and Fitness
Fri, July 6, 2012
Thu, July 5, 2012
Wed, July 4, 2012
July 04, 2012 07:00 ET
Warnex Announces Refinancing
LAVAL, QUEBEC--(Marketwire - July 4, 2012) - Warnex Inc. (TSX VENTURE:WNX) ("Warnex" or the "Company") is pleased to announce the refinancing of its operations, with its principal shareholder, Persistence Capital Partners LP ("PCP"), assuming the role of the Company's main lender.
Refinancing of Operations
Warnex has entered into an agreement with PCP in order to replace its existing credit facility with Accord Financial Inc. ("Accord"). Though only recently established, the Company believes that this facility has proven to be insufficiently adaptable to the needs of its business, with its growing base of customers. Therefore, the Company has immediately implemented a new secured facility with PCP. This new facility, which has been approved by the TSX Venture Exchange, permits a maximum availability of $1,250,000, bears interest at the rate of 19.75% (subject to a minimum annual interest payment guarantee of $185,000) and provides Warnex with substantially greater operational flexibility than is available under the Accord facility.
The Company has determined that the terms of this new credit facility are commensurate with those available from arm's length lenders and is therefore relying upon an available exemption from the requirement under applicable securities laws to obtain minority shareholder approval in connection with its implementation.
"We are pleased to be able to extend this credit to Warnex in order to provide a needed level of stability and certainty to Warnex and its clients," said Lloyd M. Segal, Managing Partner at PCP. "PCP believes in the great value provided by Warnex Bioanalytical to its industry-leading customers, and we look forward to helping the management team get back to focussing solely on executing the business plan."
"Warnex appreciates the continued and long-term support of PCP that now provides the financial stability necessary for us to concentrate exclusively on our core Bioanalytical Services business, which remains the sole focus of Warnex under the excellent leadership of Dr. Michael Mancini," stated Michael Singer, Chairman of the Board of Directors.
Change to the Board of Directors
Warnex also announces that Mattie Chinks has advised the Board that he is stepping down as a director of Warnex. Warnex thanks Mr. Chinks for his four years of loyal service to the Company. Discussions are ongoing regarding the filling of the several vacancies that currently exist on Warnex's Board, and all nominees will be subject to Warnex's normal governance review process.
About Warnex
Warnex ([ www.warnex.ca ]) is a life sciences company which, operating out of facilities located in Laval, Quebec, specializes in bioequivalence and bioavailability studies for clinical trials.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For further information identifying known risks and uncertainties, relating to financial resources, liquidity risk, key customers and business partners, credit risk, foreign currency risk, government regulations, laboratory facilities, volatility of share price, employees, suppliers, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Warnex's most recent Management's Discussion and Analysis, which can be found at [ www.sedar.com ]. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
