AirIQ lenders convert loan into C$3 million of stock

By Sheri Kasprzak

Atlanta, May 2 - AirIQ Inc. said three of its former term loan lenders have converted the principal on their notes into C$2,982,508 in shares.

The company issued a total of 5,580,100 shares at C$0.53449 in connection with the conversion from VenGrowth Investment Fund Inc., Lenbrook Group and Aquilon Capital Corp.

Also, the company drew $2 million from its non-revolving $10 million credit facility from Royal Bank of Canada.

"These more traditional means of financing improve the company's balance sheet and capital position," said Mark Kohler, the company's chief financial officer, in a statement. "The bank facility drawdown, the equity issuance and the term loan repayment provides greater leverage on our assets signifying an important new phase in financing our normalized operations."

The draw from the credit facility and the proceeds from the conversion will be used to repay C$4.98 million in secured term loan debt, bearing interest at 12% per year.

Based in Toronto, AirIQ is a wireless internet applications service provider focused on telematics.

The company's stock closed unchanged at C$0.54 Monday.

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