CON-SPACE Communications Ltd. (the “Company” or “CON-SPACE”) (TSX-V: CCB), (http://www.con-space.com), today announced that, further to its news release of April 3, 2009, it has closed its private placement of 22,000,000 common shares at $0.05 each, for gross proceeds of $1,100,000 (the “Offering”), to Turret Oy Ab (“Turret”), its largest shareholder and secured lender. The common shares issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the date of completion of the Offering in accordance with applicable securities legislation.
The proceeds of the Offering will be used to settle and payout the security held by the vendors of Search Systems Inc., to pay the overdue quarterly interest payment that was due on March 31, 2009 pursuant to the secured loan agreement with Turret and to repay Turret for two $50,000 bridge loans, with the balance for general working capital and costs associated with the financing and restructuring.
Gordon Cook, the Company’s President and CEO, said, “We are fortunate that Turret has responded favourably to our request for additional financing. This capital injection is expected to put the Company on firmer financial ground and assist us in our endeavours to continue our operations uninterrupted”.
About CON-SPACE
CON-SPACE Communications Ltd. and its four principal product lines have been the eyes, ears and voice of first responders around the world for almost two decades. CON-SPACE Hardline, the SearchCam line, Delsar Life Detectors and CON-SPACE Radio Accessories — now all manufactured by CON-SPACE Communications — are the “originals’ in the field of technical rescue. They’re time-proven, reliable, field tested and easy to use. First responders rely on the “originals” to save lives.
DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise.
TSX-Venture: Tier 1
SEC Exemption #82-3378
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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MEDIA CONTACT:
Julie Nelson
604-244-9323
800-546-3405
Email. jnelson@con-space.com