LANGLEY, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2011) - Iplayco Corporation Limited (TSX VENTURE:IPC) ("Iplayco" or the "Corporation") announces that it has entered into a sales agreement of U.S. $1,750,000 to design, manufacture and install a large indoor play structure for a corporate customer.
"We are very pleased to announce that we have entered into another significant sales agreement which is adding to our very robust sales backlog. This new sales agreement, along with the agreements of U.S. $1,752,000 and U.S. $1,358,000, previously announced on July 26, 2011 and September 6, 2011, respectively, are expected to favorably impact the operating results of our current fiscal year ending September 30, 2012," said Scott Forbes, President and Director of Iplayco.
In order to obtain this new sales agreement, the Corporation was required to issue a performance bond of U.S. $1,444,000 to the corporate customer ("Performance Bond"). As a condition of issuance of the Performance Bond, the Corporation was required to obtain a cash injection of CND $300,000 to secure an irrevocable standby letter of credit in favour of the Performance Bond underwriter. The Corporation has entered into promissory note agreements with five of its directors, including the Corporation's Chief Executive Officer, President, and Executive Vice-President, to borrow $300,000 at an annual interest rate of 18.00% ("Notes Payable"). The Notes Payable are unsecured and interest and capital are payable upon expiry of the Performance Bond. The Performance Bond is to expire once the Corporation completes certain obligations under its contract with the corporate customer. Management currently estimates that the Corporation is expected to complete its obligations under this sales agreement on or after October 31, 2012, at which time the Performance Bond would expire and payment of interest and capital from the Notes Payable would become due.
ON BEHALF OF THE BOARD OF DIRECTORS
Scott C. Forbes, President and Director
About Iplayco Corporation Limited
Iplayco designs, manufactures and installs customized indoor and outdoor play structures for children. Iplayco also owns and operates a family entertainment centre ("The Great Escape") in Langley, British Columbia. For more information, please visit www.iplaycoltd.com.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Corporation's business, results or future plans, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are disclosed elsewhere in documents that are available to the public.
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