SINGAPORE—(Marketwired – January 05, 2018) – Zecotek Photonics Inc. (TSX VENTURE: ZMS) (FRANKFURT: W1I), a developer of leading–edge photonics technologies for medical, industrial and scientific markets, announced today that it has entered into agreements to settle an aggregate of $2,958,019 of debt owed to certain creditors to the Company, including directors, employees and third–party consultants, in consideration for the issuance of common shares of the Company. The creditors have agreed to a payout discount of up to 40% of total debt and will be issued 5,752,653 common shares of the Company at a deemed price of $0.32 per share.
“As the Company enters the commercialization phase of its photonics technologies, I would like to thank the employees, management and directors for their dedication and continued support,” said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. This loyal group has full confidence in the Company's success and have discounted their unpaid wages and fees by up to 40%, which will be paid out in shares in the Company. This shows trust, belief and true commitment in the Company's future. We start the new year with a substantially improved balance sheet and a business plan to increase value for shareholders.”
A total of $1,033,880 of the debt is held by current insiders of the Company and includes management fees and director fees. Insiders will receive a total of 1,938,526 common shares on completion of the debt settlement. The disinterested directors of the Company have approved the debt settlements with the respective insiders and their associates and affiliates.
The debt settlement is subject to TSX Venture Exchange (TSXV) approval. Closing of the debt settlement will occur immediately following approval from TSXV.
The insider debt settlements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61–101 (“MI 61–101″) by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61–101 in that the fair market value of the consideration for the securities of the Company to be issued to insiders does not exceed 25% of its market capitalization.
Zecotek also announced today, for the first time in almost 4 years, that it has granted 15,200,000 incentive stock options to directors, employees and consultants for their contributions to the Company. This is the first option grant since May 2014. The exercise price of the options is set at $0.36, a 25% premium to today's closing price, and will expire in five years. The options will vest on the basis of 25% immediately, 25% 6 months after the date of grant, 25% 9 months after the date of grant, and the remaining 25% vesting 12 months following the date of grant.
The stock options are subject to regulatory approval.
Zecotek Photonics Inc (TSX VENTURE: ZMS) (FRANKFURT: W1I) is a photonics technology company developing high–performance scintillation crystals, photo detectors, positron emission tomography scanning technologies, 3D auto–stereoscopic displays, 3D metal printing, and lasers for applications in medical, high–tech and industrial sectors. Founded in 2004, Zecotek operates three divisions: Imaging Systems, Optronics Systems and 3D Display Systems with labs located in Canada, Korea, Russia, Singapore and U.S.A. The management team is focused on building shareholder value by commercializing over 50 patented and patent pending novel photonic technologies directly and through strategic alliances and joint ventures with leading industry partners including Hamamatsu Photonics (Japan), the European Organization for Nuclear Research (Switzerland ), Shanghai EBO Optoelectronics Technology Co. (China), Beijing Opto–Electronics Technology Co. Ltd. (China), NuCare Medical Systems (South Korea), the University of Washington (United States), and National NanoFab Center (South Korea). For more information visit www.zecotek.com, follow @zecotek on Twitter.
This press release may contain forward–looking statements that are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what may have been stated.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release. If you would like to receive news from Zecotek in the future please visit the corporate website at www.zecotek.com.