Vancouver, BC, April 25, 2006--Contec Innovations (TSX VENTURE:BUZ), a provider of mobile Internet infrastructure software, today announced the completion of a private placement offering with Success Hub Investments Ltd. of 5,000,000 units (the "Units") at C$0.20 per Unit for gross proceeds of C$1,000,000.
Success Hub Investments Ltd. is controlled by Yu Ma, Chairman of China-based Guangdong Zhongjin Asset Management Company.
Each Unit consisted of one common share and one half of a non-transferable share purchase warrant (the "Warrants") where each full Warrant will allow the subscriber to purchase an additional share at C$0.32 until the earlier of: (i) one year from issuance of the warrant; and (ii) the date which is the later of: (A) 30 days following the issuance of a press release by the Company confirming that the closing price of the common shares of the Company on the TSX Venture Exchange exceeded C$0.50 for 10 consecutive trading days and the aggregate number of Common Shares traded during that period was not less than 2,500,000; and (B) four months and one day from the date of issuance of the warrant. Such Units are subject to a four-month hold period expiring August 22, 2006.
Options Granted
Contec has granted incentive stock options to purchase up to 77,464 common shares of the Company at an exercise price of C$0.22 for up to five years to an officer of the Company. These options expire on April 21, 2011 and are subject to a 4-month hold-period expiring August 22, 2006. The grant of these stock options is subject to TSX Venture Exchange approval.
ON BEHALF OF THE BOARD OF DIRECTORS OF CONTEC INNOVATIONS
Don Lay, CEO
About Contec Innovations
Contec accelerates the growth of the mobile Internet by enabling mobile service providers to capitalize on new data services. Contec's core product, the Hornet(TM), is an open, carrier-class mobile service delivery platform capable of hosting multiple mobile applications in a secure, scalable environment allowing service providers to generate new revenues by efficiently deploying reliable and compelling data applications. Founded in 1999 and headquartered in Vancouver, Canada, Contec is listed on the TSX Venture Exchange under the symbol "BUZ". For more information, visit www.contec.ca.
The statement made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. Hornet(TM) is a trademark of Contec Innovations Inc.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein.
Contact:
Brian Buckley
Contec Innovations Inc.
Investor Relations
(604) 468-5638 or 1-888-552-0360
brian.buckley@contec.ca
Asa Zanatta
Contec Innovations Inc.
Media Relations
(604) 408-1389
azanatta@spiritcommunications.ca
www.contec.ca