Blackout Media Corp. Clarifies Convertible Debenture
Friday May 26, 10:30 am ET
TORONTO--(MARKET WIRE)--May 26, 2006 -- Blackout Media Corp. (Other OTC:BKMP.PK - News) is pleased to inform its shareholders that it has worked out an arrangement with the holders of the convertible debenture that there will be NO more conversions of the debenture to common stock for the next 18 months, in addition to the moratorium on the conversion the company at its option can repay the debenture at any time during the next 18 months without any penalties or bonuses of common stock and the final terms of the negotiation was the debenture can be converted, at the option of the debenture holders, into a long-term loan to the company payable in five years with a 10% interest rate on the loan.
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"We are very pleased that we could work out these very favorable terms on the convertible debenture and that this stops the dilution of the common stock. Now we can focus on the business and building shareholder value for the long term," stated Sandy Winick, President of Blackout. "We are optimistic that we will be able during the next 18 months to either retire the debenture or have the holders convert the
debenture into a long-term loan," he added