Extenway Completes Debt Settlement and Second Tranche of a $2,915,600 Private Placement and Grants Options

MONTREAL, QUEBEC--(Marketwired - March 25, 2015) - Extenway Solutions Inc. ("Extenway" or the "Company") (TSX VENTURE:EY) is pleased to announce the closing, as of March 25, 2015 (the "Closing Date"), of the following transactions:

1. a series of shares for debt transactions (the "Debt Settlement") to settle an aggregate amount of $9,427,888.94 in outstanding indebtedness of the Company (the "Converted Indebtedness") through the issuance of an aggregate number of 118,411,104 common shares of the Company at deemed price of $0.08 per share (the "Shares for Debt"); and
   
   
2. a concurrent private placement of 30,195,000 common shares of Company (the "Offered Securities") at a price of $0.08 per share for gross proceeds of $2,415,600 (the "Second Tranche").
   
   

The Transactions

The Second Tranche was completed as part of a larger offering of common shares of the Company for combined aggregate proceeds of $2,915,600 (the "Offering", and together with the Debt Settlement, the "Transactions"), the first tranche of which was completed on December 22, 2014.

As further detailed in the Company's press release dated March 2, 2015, the Converted Indebtedness settled pursuant to the Debt Settlement consisted of outstanding indebtedness under the Company's outstanding unsecured convertible debentures and unsecured working capital advances from certain officers and directors of the Company.

The Shares for Debt and Offered Securities issued pursuant to the Transactions (collectively, the "Shares") were issued to the Caisse de dépôt et placement du Québec (the "Caisse"); Desjardins-Innovatech s.e.c. ("DI"); certain existing shareholders of Extenway, including Messrs. John McAllister (President, CEO, and a director of Extenway) and David Brown (CFO of Extenway); and others in reliance on exemptions under Regulation 45-106 respecting Prospectus and Registration Exemptions (Québec).

As a result of the Caisse, DI, Messrs. McAllister and Brown, and another senior officer of the Company who participated in the Debt Settlement each being related parties to the Company, the Transactions are considered related party transactions under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (Québec) ("Regulation 61-101") and Policy 5.9 of the TSX Venture Exchange (the "Exchange"). As previously announced, the Company relied upon sections 5.5(b) and 5.7(e) of Regulation 61-101 for exemptions from the formal valuation and minority approval requirements of Regulation 61-101 in respect of the Transactions.