WhereDaily News: GuestLogix Enters into a Forbearance Agreement

TORONTO, ONTARIO--(Marketwired - Dec. 2, 2015) - GuestLogix Inc. (TSX:GXI) ("GuestLogix" or the "Company"), the leading global provider of ancillary-focused merchandising, payment and business intelligence technology to airlines and the passenger travel industry, today announced that it has entered into forbearance agreements (the "Forbearance Agreements") with its senior lender and its subordinated lenders (collectively, the "Lenders") in respect of its CDN$7.5 million senior revolving credit facility and its CDN$9 million subordinated term credit facility (collectively, the "Credit Facilities") as a result of the previously disclosed breach by the Company of its EBITDA covenant with its Lenders. Under the terms of the Forbearance Agreements, among other things: (i) the Lenders agree to forbear from taking any steps to demand repayment of the amounts owing under the Credit Facilities until December 18, 2015; (ii) the Company agrees not to make any payments of interest on the Company's 7.00% extendible convertible unsecured subordinated debentures (the "Convertible Debentures") or payments under the share purchase agreement dated December 2, 2014 pursuant to which the Company purchased the shares of OpenJaw Technologies Limited; and (iii) the Company agrees to replace the warrants to purchase an aggregate of 2,400,000 common shares of the Company previously issued to its Subordinated Lenders in connection with the original subordinated term credit facility in order to change the exercise price per share from $0.796 to $0.29 (being the 5-day volume-weighted average price of the common shares preceding the date of the Forbearance Agreement) and the expiration date from September 5, 2015 to December 31, 2018. All other terms of the warrants remain unchanged. The Company is at arm's length with the Lenders.