Calian Reaches Agreement With AIM
Ottawa, Ontario July 04, 2011 - Calian Technologies Ltd. (TSX:CTY) announced today that it has reached an agreement with AIM Health Group Inc. to modify the terms of the convertible debenture held by Calian. Under the agreement, Calian will immediately receive $697 in cash and the remaining debenture will be satisfied by payments of $700 on December 15, 2011 and $1,500 on December 30, 2013. The debenture carries an annual interest rate of 10% and is convertible into common shares of AIM at the rate of $0.30 per share. AIM is also entitled to cause the debenture to be converted into common shares at the rate of $0.40 per share when in any given 6 month period, trading volume of AIM common shares exceed 1,089,642 shares and the weighted average share price is at least $0.46. Conversion is limited to 50% of the debenture in any 6 month period. On a fully converted basis, this investment represents a 6% interest based on the current number of common shares outstanding. The debenture is subordinate to bank indebtedness and also, under certain circumstances, future borrowings. The debenture is subject to early repayment by AIM in whole or in part upon meeting prescribed notice requirements.
"We are pleased to have reached a mutually agreeable modification to the convertible debenture that provides for an orderly repayment, a reasonable cash return and the potential upside in the conversion feature" said Ray Basler, Chief Executive Officer.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. The Business and Technology Services Division augments customer workforces with flexible short and long-term placements, recruitment and outsourcing of engineering, health care professionals and other skilled professionals. The Systems Engineering Division plans, designs and implements solutions for many of the world's space agencies and leading communications satellite manufacturers and operators, as well as providing contract manufacturing services for customers in North America.
For further information, please contact us at [email protected] or phone us at 613-599-8600 Ray Basler President and Chief Executive Officer 306-931-3425 Jacqueline Gauthier Chief Financial Officer 613-599-8600
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