Company News — Plaintree Systems

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Plaintree Systems gets cash injection

Ottawa's Plaintree Systems has raised $218,000 through a series of convertible debentures and a loan.

The debentures have a principal value of $145,000. An affiliate of Targa, the company's largest shareholder and a related party, will purchase $36,000 worth of debentures. A corporation controlled by a member of the company's board has agreed to purchase $109,000.

The debentures will mature two years after issuance and will be non-interest bearing until the due date and thereafter will bear 10 per cent interest per annum until paid in full. They are also convertible into Plaintree shares at a conversion price of four cents a share as long as they are outstanding.

In a related transaction, an affiliate of Targa has agreed to loan Plaintree $73,000. The loan will be payable on demand and bear interest at a rate of 10 per cent per annum payable on the date of payment of the loan.

"Hypernetics Limited and one of Plaintree's board members have taken a look at the potential sales position of Plaintree and have decided that Plaintree has the potential to become a major player in the fast growing market for optical wireless products," says CEO David Watson. "Plaintree's newly expanded sales team has managed to get Plaintree into senior level discussions with large telcos, ISPs and MSO's world wide."

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