Boucherville, Québec, May 25, 2007 – Groupe Bikini Village Inc. (the “Corporation”) (TOR: GBV), announces the signature today of a subscription agreement between the Solidarity Fund QFL (the “Fund”) and the Corporation. The Fund could invest up to $4,500,000 in the Corporation by subscribing today to an unsecured convertible debenture in the nominal amount of $2,500,000. Over the next 24 months, the Fund will subscribe, at the request of the Corporation, to additional debentures of up to $2,000,000, subject to certain conditions, for a total investment of $4,500,000.
These debentures will bear interest at an annual rate of 8%, payable monthly, and must be bought back by the Corporation in 60 equal monthly payments, starting July 1, 2009. As of June 1, 2009, the Fund may convert them into common shares of the Corporation, at the conversion rate of $0.20 per share. In case of default or change of control of the Corporation, the Fund may convert them at a possibly more advantageous rate.
The Corporation also announces that it has renewed, under more favorable terms, its credit facility agreement of up to $3,000,000 with RBC Financial Group, Asset Financing.
This investment and this credit facility will allow the Corporation to finance its expansion and renovation plan as well as its working capital needs. “We are proud of the confidence shown by the Solidarity Fund QFL and RBC Financial Group, Asset Financing in our strategic plan” said Yves Simard, President and Chief Executive Officer of the Corporation.
ABOUT THE SOLIDARITY FUND QFLWith net assets of over $6.8 billion, the Solidarity Fund QFL is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 1,681 companies. It currently has nearly 570,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and support over 116,000 jobs. For more information, visit
www.fondsftq.com ABOUT GROUPE BIKINI VILLAGE INC.Groupe Bikini Village Inc.’s swimwear division operates 56 swimwear boutiques in Québec and Ontario under the Bikini Village and Océan Bikini Village banners. The company employs approximately 450 people.
Forward Looking StatementsThis news release contains certain forward-looking statements concerning our future operations, economic performances, financial conditions and financing plans. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate in the circumstances, including the risk factors disclosed in our annual information form (on SEDAR at www.sedar.com). However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, uncertainties and assumptions. Consequently, all of the forward-looking statements made in news release are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us. We undertake no obligation and do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.
Information:
Yves Simard
(450) 449-1310 ext 4797
ysimard@bikinivillage.com