TORONTO, ONTARIO, Jul 09, 2007 -- Counsel Corporation (TSX: CXS) has invested $690,000 as part of a syndicated $3,500,000 convertible debenture financing of RepeatSeat Ltd. (TSX VENTURE: RPS) which was completed on June 29, 2007. Roynat Capital Inc. provided an additional $3,500,000 of convertible debenture financing to RepeatSeat on identical terms and conditions to those of the investor syndicate. The financing enabled RepeatSeat, a North American leader of mobile commerce and internet based ticketing solutions for the entertainment and sports industries, to acquire 100% of the equity of Janda Products Limited, carrying on business as New Way Sales, a national supplier of arcade and redemption game services primarily to theatre and entertainment businesses.
The convertible debentures have a guaranteed interest rate of 10% per annum payable monthly, a five year maturity, and are convertible into common shares of RepeatSeat at anytime prior to maturity at fixed conversion rates, with a contingent bonus payment if the debentures are not converted in their entirety.
"We are delighted with the opportunity to provide financing to RepeatSeat," said Allan Silber Chairman and CEO of Counsel Corporation. "We believe the company has an exciting future ahead of it. This transaction fits perfectly with Counsel's mandate of investing in businesses that generate positive and sustainable cash flow and provides an opportunity to realize above average returns should the convertible debentures be converted into shares of RepeatSeat in the future."
About Counsel Corporation
Counsel Corporation (TSX: CXS) is a diversified company focused on the acquisition of businesses in diverse industry sectors and at various stages of their business life cycles. Its goal for acquired businesses is to create value within these businesses and to realize on the value creation at the appropriate time. Counsel currently operates in four specific sectors: long-term care, real estate, patent licensing and custom case goods. For further information, visit Counsel's website at www.counselcorp.com.
Forward-Looking Statements
The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel Corporation's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which Counsel Corporation currently operates, but because of the factors listed herein, as well as other factors beyond Counsel Corporation's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.
Contacts: Counsel Corporation Stephen Weintraub Executive Vice President, Secretary & CFO (416) 866-3058 Email: saw@counselcorp.com Website: www.counselcorp.com
SOURCE: Counsel Corporation
mailto:saw@counselcorp.com http://www.counselcorp.com
