TORONTO, Nov. 15, 2004 (PRIMEZONE) -- Thinkpath Inc. (OTCBB:THTHF) announced today that it has closed an Original Issue Discount (OID) facility for $875,000 with net proceeds of $630,000. The proceeds will be used to pay debt and litigation settlement obligations and for working capital.
Under the terms of the OID, the investors will have the right to convert up to $875,000 in convertible debentures into shares of the Company's common stock at a conversion price equal to the lesser of $0.0002 or 80% of the average of the 3 lowest intraday trading prices during the 20 trading days preceding conversion. The debentures will become due one year from date of issuance.
Along with the debentures, the Company issued warrants to purchase a number of shares of the Company's common stock equal to the conversion shares issuable at the closing price. The warrants are exercisable at any time and in any amount for a period of seven years from closing at a purchase price of $.0002 per share.
Thinkpath is a global provider of Engineering Solutions in Engineering Knowledge Management, including Design, Analysis, FEA, Design/Build, On-site Support, Technical Publishing, Forensic Engineering and Consulting.
Further information about the company may be found at www.thinkpath.com.
Forward-Looking Statement
This press release contains forward-looking statements regarding Thinkpath Inc., its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause Thinkpath's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by Thinkpath in this news release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Thinkpath's business.