Jul 6 2010
Cenit Corporation ("Cenit" or the "Company"), is pleased to announce that it has closed its previously announced arrangement with its debenture and note holders to restructure obligations aggregating $407,124 including interest of approximately $5,800. Cenit issued 8,142,480 units at $0.05 per unit, in full and final satisfaction of all amounts owing. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one common share for $0.10 for a period of two years (the "Warrant Term") from the closing of the transaction (the "Closing Date"). However, should the closing price at which the common shares trade, equal or exceed $0.20 for 15 consecutive trading days following the date that is four months and one day after the Closing Date, Cenit may accelerate the Warrant Term to the date which is 30 days following the date a press release is issued by Cenit announcing the reduced Warrant Term. In accordance with TSX-V policies an insider who holds notes in the principal amount of approximately $10,000 was not issued any warrants in settlement of that debt. No new insiders were created as a result of the restructuring.
The Company is also pleased to announce that it has granted 1,850,000 options (each an "Option, collectively, the "Options") to directors, officers and consultants of the Company. Each Option entitles the holder to purchase one common share for $0.10 for a period of five years from the date of grant.
All securities issued in conjunction with the debt restructuring and grant of Options are subject to a hold period which expires four months after the Closing Date and date of grant, respectively.
Consistent with its previously stated intentions, the Company continues to evaluate acquisition opportunities that are financially prudent and accretive to the Company's business strategy. The Company is focused on some excellent options at the present time and Cenit is optimistic that it will soon be in a position to announce a transaction that will materially enhance shareholder value.