- Published: 14 October 2015
- Written by Editor
Keek Announces Proposed Restructuring of Secured Debt
TORONTO, ON--(October 14, 2015) - Keek Inc. (TSX VENTURE: KEK) (KEEKF) a leading global mobile video social network featuring a unique 36 second video format, with over 74 million registered users, today announced that Riavera Corp. (a company controlled by Mark Itwaru and a parent company to Personas.com Corporation) ("Riavera") has entered into an agreement with Pinetree Income Partnership ("Pinetree") to purchase Pinetree's secured notes (the "Pinetree Notes"). Pinetree purchased $3,000,000 principal amount of 12% secured promissory notes of Keek on November 5, 2014 (see press release dated November 6, 2014). The Pinetree Notes represent 55% of the principal amount of all secured notes ("Notes") outstanding in Keek. The Pinetree Notes are due November 5, 2015. Keek understands the agreement between Riavera and Pinetree is scheduled to close on October 23, 2015.
Following the acquisition of the Pinetree Notes, Riavera has agreed to amend the terms of the Pinetree Notes with Keek as follows: (1) extend the maturity date of the Notes to March 1, 2017; and (2) reduce the interest rate from 12% per annum to 7% per annum. In consideration for amending the existing terms of the Notes, Keek has also agreed to make the Notes (both principal and accrued interest) convertible into common shares of Keek at the option of Riavera at any time prior to maturity. Subject to receipt of all regulatory approvals including the TSX Venture Exchange, the proposed conversion ratio would be one (1) common share of Keek for every dollar of principal or interest converted. In addition, three Note holders with an aggregate of $900,000 principal amount have agreed to amend their Notes on the same terms as the proposed amendments to the Pinetree Notes. Their agreement is subject to the completion of the acquisition of the Pinetree Notes by Riavera and the subsequent amendments. Assuming completion of the acquisition and amendment of the Pinetree Notes by Riavera, Keek will have succeeded in extending and restructuring 72% of the principal amount of its outstanding secured debt.
"We are pleased to announce that we have purchased 55% of the principal amount of Keek's secured debt and extended its maturity date as another effort in our ongoing commitment to revitalize Keek and drive it to becoming a market leader once again," stated Mark Itwaru, CEO and Chairman of Personas.com Corporation.
"We are very pleased for the continued support from Mark. The relationship with Mark and Personas team has opened the doors to new and exciting revenue opportunities which will be announced and launched in the coming months. The purchase of the Pinetree Notes by Riavera provides us with the additional financial support we needed," stated Gerry Feldman, Director of Keek.
In the coming weeks, subject to receiving approval from the TSX Venture Exchange, Keek will be contacting the remaining secured Note holders and offering the same amended terms.
Keek is a leading mobile video social network with over 74 million registered users. Keek is easy to use, fast and personal. With Keek, members around the world create and interact with videos up to 36 seconds in length and 111 characters of accompanying text, in either public or private views. Keek makes it simple for anyone to instantly create, distribute, discover and react to content in real-time across mobile devices and the web. The Keek app is available in over 190 countries across 6 global regions, and in 36 languages.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.
Forward looking statements:
The information and statements in this news release contain certain forward-looking information relating to the timing and completion of proposed amendments to the terms of Notes held by certain secured note holders. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. Keek's forward-looking information is expressly qualified in its entirety by this cautionary statement. Except as required by law, Keek undertakes no obligation to publicly update or revise any forward-looking information.
For further information, please contact:
Gerry Feldman, CPA, CA
Director of Keek
CEO and Chairman of Personas
416-815-7000 ext 320