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KAMLOOPS, B.C. – Audiotech Healthcare Corporation (AUD:TSX Venture Exchange) is pleased to announce that it has renewed all of its long-term debt obligations that were scheduled to reach maturity during the remainder of 2009.
- $77,000 in unsecured promissory notes bearing interest at 8% per annum that reached maturity on March 31, 2009, were successfully renewed with the original investors for an additional 5 year term at the same interest rate.
- $68,608 in unsecured promissory notes bearing interest at 8%, repayable in blended monthly installments of $1,450, originally scheduled to reach maturity in June 2009, have been extended under identical terms for an additional 5 year term with the current investors. These promissory notes had a balance of $74,525 as at December 31, 2008.
- $200,000 in unsecured promissory notes, bearing interest of 8% per annum, originally scheduled to mature on August 1, 2009, have been extended under identical terms for an additional period of 5 years with the original investors.
As a result of these renewals, more than $300,000 in long term debt classified as a current liability as at the end of the first quarter (December 31, 2008) has been renewed on a long-term basis, and will be reflected in long-term liabilities as at the end of the second quarter of fiscal 2009 (March 31, 2009). These renewals significantly increase working capital and restore the working capital position to a solid positive balance. The only other long-term debt maturing during the remainder of 2009 is a term loan with a current balance of US$9,852, which upon maturity will be fully repaid. Accordingly, this loan will not be replaced or renewed.
Management is very confident that the company is well capitalized to meet all of its working capital needs and to satisfy is growth objectives in fiscal 2009 and beyond.
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