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TORONTO, ONTARIO--(Marketwired - Jan 20, 2016) - Ellipsiz Communications Ltd. (formerly NXA Inc.)(TSX VENTURE:ECT) (the "Company") is pleased to announce that its operating subsidiary, Ellipsiz Communication Taiwan Ltd. ("ECTW"), has entered into a loan agreement dated January 20, 2016 which allows ECTW to borrow up to the equivalent of US$800,000 (the "Loan") on favourable terms. Upon execution of the Loan agreement, ECTW borrowed US$288,022 and CDN$111,978.15 under the Loan.
The Loan is non-secured, bears interest at 2% per annum (which is payable on every sixth month anniversary from the respective date amounts are advanced), and matures on March 31, 2017. ECTW can pre-pay the Loan at any time without penalty. ECTW intends to use the proceeds of the Loan, among other things, to enhance its big data solution and secure and service new and ongoing business contracts.
The Loan has been obtained from Mr. Michael Koh, a director and principal shareholder of the Company, which transaction is exempt from the requirements of Multilateral Instrument 61-101.
A material change report in respect of the Loan will be filed less than 21 days before entering into the Loan agreement, which the Company considers to be reasonable given the favourable terms of the Loan and the Company's need for working capital to service new and ongoing contracts.
About Ellipsiz Communications Ltd.
The Company, through its indirect operating subsidiary, ECTW, focuses on setting up operations support systems ("OSS"), being systems which control and monitor network activities, for many communication service providers, including mobile network providers, fixed line telephone operators, cable operators and internet service providers (ISPs) in Taiwan. ECTW tailors a unique solution for each client depending on its particular needs, which involves setting up, customizing and integrating a combination of third party hardware and OSS software.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Ellipsiz Communications Ltd.
Vice President - Finance