Fareport Capital cancels debt restructuring, related share placement

By Laura Lutz

Washington, Dec. 1 - Fareport Capital Inc. announced that it will not proceed with its previously reported C$2.08 million private placement of shares.

Settlement of the placement was subject to the completion of a debt restructuring, which has now been cancelled after BG Capital Management Corp. decided not to proceed with the deal.

Under the plan, Fareport would have paid C$1.075 million to its creditors. The balance of the company's debt, which was about C$2.1 million, was to be sold by the creditors to BG Capital Management at a discounted price of C$460,000.

The placement, which priced on Oct. 24, was to include 1.3 million shares at C$1.60 each.

A 100-to-1 share consolidation that was to follow the placement was also cancelled.

In a news release, the company said it is "hopeful that a new financing arrangement with potential investors can be arranged in the near term."

Fareport is a Toronto-based taxicab and transportation company.

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