Northquest Ventures Inc agreed with Mercury Communications Ltd for repayment of $2.9m of Northquest’s outstanding debt by March 1 1995: Mercury will be entitled to convert the debt into enough Northquest shares to give it slightly less than 50% of Northquest’s outstanding shares on a fully diluted basis; a third party acquired an option from Mercury to buy Mercury’s rights under the agreement and has until September 6 to purchase the rights from Mercury; the mystery party acquired the option for $188,000, which was paid directly to Bell Canada and is refundable by Northquest only if such third party decides to exercise the option and Mercury is not able to confer upon the third party the ability to obtain, on conversion of the loan and exercise of a stock option agreement with Northquest’s chairman and president, over 50% of votes and Northquest equity, fully diluted.
