01 Communique Announces Completion of Debt Refinancing

TORONTO, Jan. 28, 2020 /CNW/ - 01 Communique Laboratory Inc. (the "Company") (ONE: TSX-V) today announced that it has completed a refinancing of its outstanding $400,000 principal amount of secured debentures. 

On April 24, 2015 the Company issued $400,000 principal amount of secured debentures that had a term of 36 months and bore interest at a rate of 10% per annum calculated and payable quarterly. The Company previously amended such debentures to extend their term to April 24, 2020 and to increase the annual interest rate to 15%. In connection with the issuance of such debentures the Company had issued a total of 800,000 common share purchase warrants each of which, after certain amendments, entitled the holder to acquire one common share at a price of $0.10 until April 24, 2020, subject to an accelerated expiry provision which was triggered in 2019.  The Company agreed with the holders of such debentures to redeem the debentures without any prepayment penalty and issue new secured debentures with the same terms other than a new expiry date of April 24, 2021.  In connection with the issuance of the new debentures the Company has also issued an aggregate of 800,000 common share purchase warrants. Each such warrant is exercisable at any time prior to April 24, 2021 into one common share in the capital of the Company at an exercise price of $0.13 per share.

The debentures and warrants were issued pursuant to an exemption from the prospectus requirements and are subject to a hold period that expires four months and one day following the date of issuance.

About 01 Communique
Established in 1992, 01 Communique Laboratory Inc. (TSX-V: ONE) has always been at the forefront of technology. In early 2018 the Company announced the transition of its business focusing on post-quantum cybersecurity with the development of its IronCAP technology. IronCAP is an advanced Goppa code-based post-quantum cryptographic technology that can be implemented on classical computer systems as we know them today while at the same time can also safeguard against attacks in the future post-quantum world of computing. The Company's legacy business provides its customers with a suite of secure remote access services and products. The Company's legacy products are protected in the U.S.A. by its patents #6,928,479 / #6,938,076 / #8,234,701; in Canada by its patents #2,309,398 / #2,524,039 and in Japan by its patent #4,875,094. For more information, visit the Company's web site at www.ironcap.ca and www.01com.com

Cautionary Note Regarding Forward-looking Statements
Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use such words as "may", "will", "expect", "believe", "plan", "intend", "are confident" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under "Risk and Uncertainties" in the Company's Management`s Discussion and Analysis document filed on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.

Neither TSX Venture Exchange ("TSX-V") 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.

SOURCE 01 Communique Laboratory Inc.

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