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CANADA, NTG
Clarity Networks
Inc. (TSXV:
NCI) ("NTG"
or the "Company")
is pleased
to announce
that it intends
to complete
a private
placement
of a series
of unsecured
convertible
debentures
in the aggregate
principal
amount of
up to CDN$2,000,000
in units of
CDN$2,000
(the "Debentures").
The Debentures
shall bear
interest at
the rate of
ten (10%)
percent per
annum and
shall mature
three (3)
years following
the date of
issuance.
The Debentures
shall be redeemable
at the option
of the holder
at any time
after two
(2) years
following
the date of
issuance.
The principal
amount of
the Debentures
shall be convertible
into common
shares of
the Corporation
at any time
prior to maturity
at the option
of the holder
at a conversion
price of $0.25
per common
share. The
Debentures
will also
have a forced
conversion
provision
whereby the
Corporation
may force
the conversion
of the Debentures
at a price
of $0.25 per
common share
if at any
time the average
of the closing
price over
any 30-day
period exceeds
$0.50.
The Debentures
will be the
Company's
general unsecured
obligations
and will be
subordinated
in right of
payment to
all of its
existing and
future senior
debt. Proceeds
shall be used
predominantly
as working
capital and
for the purpose
of marketing
of our products
both nationally
and internationally.
Completion
of the private
placement
herein contemplated
is subject
to market
and other
conditions
and the Company
obtaining
all regulatory
body approvals
in connection
therewith
including
without limitation,
approval of
the TSX Venture
Exchange Inc.
The private
placement
is only available
to persons
and in jurisdictions
permitted
by the applicable
securities
regulatory
authorities.
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