VANCOUVER, BC / TheNewswire / January 29, 2018 -- Eight Solutions Inc. (TSXV:ES) ("Eight Solutions" or the "Company") announced that it has entered into an agreement with an officer and director of the Company to extend the maturity date of a convertible debenture in the principal amount of $1,500,000 issued to an executive officer on July 31, 2015 (the "Debenture"). The Debenture has been amended to extend the conversion period from January 27, 2018 to March 31, 2019 and the conversion price has been amended from $0.55 to $0.14.
This Debenture amendment comes at an exciting time for Eight Solutions, including further development on the Cumul8 data analytics and IoT platform along with an expanded sales and distribution strategy for the Jetstream high speed file transfer system. This Debenture amendment allows the Company to launch Cumul8 in and beyond the forestry sector, as well as introduce Jetstream beyond media and entertainment to other industries such as professional services. Furthermore, this amendment provides Eight Solutions with the flexibility to succeed in very competitive markets, as the Company has been able to develop a ground-breaking software platform with far less development capital as some of its competitors.
The amendment to the Debenture is a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). and TSXV Policy 5.9. The Company is relying on exemptions from the formal valuation and minority approval requirements in respect of the Transaction, pursuant to Section 5.5(b) (Issuer Not Listed on Specified Markets) and Section 5.7(1)(a) (Fair Market Value Not More Than 25% of Market Capitalization) of MI 61-101, respectively.The Company did not file a material change report 21 days prior to the closing of the amendment transaction because details were not settled until shortly prior to closing and the Company wished to complete the amendment transaction as soon as possible
The amendment is subject to the final approval of the TSX Venture Exchange. The amended debenture is subject to a statutory hold period expiring on the date that is four months and one day after the closing of the amendment transaction.
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