Validian Closes Another Important Refinancing: Further Improves Balance Sheet
OTTAWA, June 29, 2016 - Validian Corp. (OTCQB: VLDI), a leading innovator in cyber security technology, today is pleased to announce that the Company has closed another important refinancing, further improving its balance sheet. On June 22, 2016, the Company completed the exchange of an additional $908,146 of principal and accrued interest of its Unsecured Senior Convertible Notes issued from 2008 to 2015, which are convertible at $0.03 per share and earn interest at 10% per annum, for 909 shares of Series C Preferred Stock with a stated value of $1,000 per share, convertible at $0.03 per share with no interest coupon.
Bruce Benn, Chief Executive Officer of Validian commented, "As announced in a press release earlier this month, Validian completed a significant financing in which it received $1.225 million in cash from the sale of its Series A Preferred Shares convertible at $0.10 per share to several new investors. We also eliminated all of our secured convertible debt and much of our unsecured debt, by exchanging it for Series A, B and C Preferred Shares with no interest coupon or dividends.
With the latest exchange, we now have removed a total of over $4 million of secured convertible
debt and $3 million of unsecured convertible debt, and eliminated more than $700,000 per year in
interest costs. This accomplishment not only further strengthens the Validian balance sheet but also
improves our position in current and pending negotiations with several large companies with
whom we are considering partnering for the integration, deployment, use, and commercial rollout of
our technology in both domestic and global markets. Moreover, it provides more than 12 months of
critical working capital, which will go towards completing revenue generating installations and
deployments and helping grow our sales and prospect pipeline."
About Validian Corporation (OTCQB VLDI)
Validian's radically innovative, cyber security middleware platform provides, manages and governs secure access of mobile, web and non-mobile applications, mobile devices, computers, servers, databases and infrastructure as well as secure access, storage, transfer, usage and sharing of critical data and digital information - where the value is.
Validian enables the next generation of secure Mobile Messaging, Communications and Advertising; Cloud Computing and Cloud Storage; Distributed Applications and Computing; and Web Application and WebPortal Access and Usage.
Validian is a U.S. public company with offices in the U.S. and Canada. Visit www.Validian.com for more information on its digital asset solutions.
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Safe Harbor Statement
Investors should carefully consider the information contained in this news release before making an investment in the shares of the company. Information contained in this news release contains "forward looking statements", which can be identified by the use of forward-looking terminology such as "believes," expects," "may," "should," or "anticipates" or negative thereof or given that the future results covered by such forward -looking statements will be achieved. The preceding matters constitute cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to vary materially from the future statements. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements.
Bruce Benn, CEO and President