Sonomax Hearing Healthcare Inc. (TSX Venture: SHH) is very pleased to announce that the holders of 17 of the Company's 19 outstanding convertible promissory notes have agreed in writing to extend, in effect, the maturity date of their notes, which came due in April 2009.
Each of the 17 note holders, who hold in the aggregate $1,785,000 of the outstanding $2,085,000 principal amount of Sonomax's notes, accepted one of two alternatives offered by Sonomax - to forbear in the exercise of their rights under their notes to March 31, 2010 (accepted by the holders of notes in the aggregate principal amount of $1,027,000), or to exchange their current notes for new convertible Sonomax notes (accepted by the holders of notes in the aggregate principal amount of $758,000). In addition, Sonomax expects an answer shortly from the holder of one note, in the amount of $150,000, as to which of the two alternatives he will select.
The new convertible Sonomax notes, in the aggregate principal amount of $758,000, will mature on August 31, 2010 and bear interest at a rate of 10% per annum, payable semi-annually in arrears. The new notes may be converted, at the option of their holders, into Sonomax common shares at a price of $0.05 per share. In addition, Sonomax will issue one common share purchase warrant to the holders of the new convertible notes for each dollar of principal amount of the new notes. As a result, Sonomax will issue an aggregate of 758,000 warrants to the holders of the new convertible notes. Each warrant will entitle the holder thereof to acquire one additional common share of Sonomax at a price of $0.05 until August 31, 2010, the maturity date of the new convertible notes.
"The decision of our note holders removes a major obstacle to Sonomax's mission critical achievement of making the V4 self-fit earpiece a reality", said Nick Laperle, Sonomax's President and Chief Executive Officer.
The issuance of the new convertible notes and warrants has been conditionally accepted by the TSX Venture Exchange, subject to the filing by Sonomax of standard documentation.
The holder of one note, in the amount of $150,000, has instituted legal proceedings against Sonomax for payment of the principal amount of the note and interest.
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