PR, convertiable conversions stopped!
Press Release Source: GVI Security Solutions, Inc.
GVI Security Solutions, Inc. Restructures Debt
Monday October 9, 12:35 pm ET
CARROLLTON, Texas--(BUSINESS WIRE)--GVI Security Solutions, Inc. (OTCBB:GVIS - News), a leading provider of video security solutions featuring the complete Samsung Electronics line of products, today announced it had entered into agreements with Laurus Master Fund Ltd. to extend the repayment period of its term and revolving loans to December 31, 2007.
On October 4, 2006, GVI completed a $4.75 million private placement on terms previously announced. A final closing of a $250,000 investment on October 6, 2006 resulted in total gross proceeds from the private placement of $5.0 million.
In connection with the private placement, GVI entered into an Omnibus Amendment and Consent with Laurus, GVI's senior secured lender, pursuant to which Laurus consented to the issuance of the Convertible Notes in the private placement and agreed to amendments to GVI's loan agreements with Laurus under which:
Laurus's ability to convert GVI's debt into Common Stock has been eliminated;
The maturity date of all Laurus loans has been extended from May 24, 2007 until December 31, 2007;
All prepayment penalties have been eliminated;
Monthly principal payments of $152,083 each will be due under the Term Loan for the months of January 2007 through December 2007.
"Laurus has been a cooperative lender and partner while GVI has worked through its liquidity issues over the recent past and has stepped up once again by working with us to complete this funding. We can now focus on completing the turnaround of GVI and growing our core business," said Joe Restivo, CFO of GVI.
About GVI Security Solutions, Inc.
GVI Security Solutions Inc. is a leading provider of video surveillance security solutions to the homeland security, institutional and commercial market segments.
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