Iplayco Announces Sales Agreement of U.S. $1,750,000
November 17 2011 - 1:36PM
Marketwired
Iplayco Corporation Limited (TSX VENTURE:IPC) ("Iplayco" or the
"Corporation") announces that it has entered into a sales agreement
of U.S. $1,750,000 to design, manufacture and install a large
indoor play structure for a corporate customer.
"We are very pleased to announce that we have entered into
another significant sales agreement which is adding to our very
robust sales backlog. This new sales agreement, along with the
agreements of U.S. $1,752,000 and U.S. $1,358,000, previously
announced on July 26, 2011 and September 6, 2011, respectively, are
expected to favorably impact the operating results of our current
fiscal year ending September 30, 2012," said Scott Forbes,
President and Director of Iplayco.
In order to obtain this new sales agreement, the Corporation was
required to issue a performance bond of U.S. $1,444,000 to the
corporate customer ("Performance Bond"). As a condition of issuance
of the Performance Bond, the Corporation was required to obtain a
cash injection of CND $300,000 to secure an irrevocable standby
letter of credit in favour of the Performance Bond underwriter. The
Corporation has entered into promissory note agreements with five
of its directors, including the Corporation's Chief Executive
Officer, President, and Executive Vice-President, to borrow
$300,000 at an annual interest rate of 18.00% ("Notes Payable").
The Notes Payable are unsecured and interest and capital are
payable upon expiry of the Performance Bond. The Performance Bond
is to expire once the Corporation completes certain obligations
under its contract with the corporate customer. Management
currently estimates that the Corporation is expected to complete
its obligations under this sales agreement on or after October 31,
2012, at which time the Performance Bond would expire and payment
of interest and capital from the Notes Payable would become
due.
ON BEHALF OF THE BOARD OF DIRECTORS
Scott C. Forbes, President and Director
About Iplayco Corporation Limited
Iplayco designs, manufactures and installs customized indoor and
outdoor play structures for children. Iplayco also owns and
operates a family entertainment centre ("The Great Escape") in
Langley, British Columbia. For more information, please visit
www.iplaycoltd.com.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements.
All statements, other than statements of historical fact, included
herein, including without limitation statements regarding the
Corporation's business, results or future plans, are forward
looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from
the Corporation's expectations are disclosed elsewhere in documents
that are available to the public.
Neither TSX Venture Exchange, nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Iplayco Corporation Ltd. Max Liszkowski Chief
Financial Officer and Corporate Secretary (604) 607-1111 (604)
607-1107 (FAX)ir@iplaycoltd.comwww.iplaycoltd.com
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