In October 2010, the Company initiated a process to review all strategic alternatives available to the Company. Such alternatives would include a financing, a recapitalization, a strategic partnering, or a merger or the sale of all or part of the assets of the Company.
Also, the Company had disclosed an agreement with its main Canadian lender, whereby the Company's operating credit facility was increased from $2,000,000 to $4,000,000 and capital instalments on its long term debt were postponed to facilitate the execution of the Strategic Process. Such agreement has now been extended to February 2, 2011.
In the event that the Company is unable to complete a transaction before February 2, 2011, the Company will have to conclude further arrangements with its main Canadian lender with respect to the funding of its operations and the payment of the postponed instalments.
The Company is still evaluating its alternatives but cautions shareholders that there is no assurance whether it will receive proposals from third parties as a result of the Strategic Process, implement any proposal received or that stakeholders will recover their investment in the Company. The Company does not intend to provide further updates on the Strategic Process unless a definitive agreement is reached or a determination is made not to pursue any transaction.