Kaizen and HPX complete conversion of outstanding loanVANCOUVER, CANADA – Kaizen Discovery Inc. (TSXV: KZD) announced today that, further to its September 15, 2016 news release, Kaizen has received approval from the TSX Venture Exchange and has converted the full amount of principal and interest owing on a loan facility provided to Kaizen by its majority shareholder, HPX TechCo Inc. (HPX), totaling approximately C$5.07 million, into common shares of Kaizen at a conversion price of C$0.1575 per share.
into common shares of Kaizen
As a result of the conversion, the amount owing on the loan facility has been reduced to zero and Kaizen has issued 32,210,460 common shares to HPX, taking HPX's ownership in Kaizen from 60.7% to 66.8%. The conversion price of C$0.1575 per share represents a 25% discount to Kaizen's closing share price of C$0.21 on September 15, 2016.
The loan facility was established in 2013 as part of the reverse take-over transaction with HPX. Kaizen had previously received the full C$5.0 million principal amount available under the loan facility. The HPX loan facility will remain in place following the conversion and will remain available to be drawn by Kaizen in the future.
Details of the HPX loan facility are summarized in Kaizen's December 22, 2015 news release available at www.kaizendiscovery.com or www.sedar.com.
More information on Kaizen is available at www.kaizendiscovery.com.
Interim Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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