Vancouver, BC, June 17, 2005--Contec Innovations announced the completion of its private placement offering of 7,111,167 units at C$0.1125 per Unit for gross proceeds of C$800,000. Such Units are subject to a four-month hold period expiring October 17, 2005.
Each Unit consisted of one common share and one non-transferable share purchase warrant (the "Warrants") where each Warrant will allow the subscriber to purchase one additional common share at C$0.15 until June 16, 2007. A finder's fee of C$20,900 cash and 232,228 finder's warrants, exercisable at C$0.1125 per share for a period of one year, were paid in relation to this financing. Such warrants are also subject to a four-month hold period expiring October 17, 2005.
Contec will also issue to certain employees an aggregate of 317,473 common shares at a deemed price of C$0.13 per share. The shares covered under this issuance represents the amount certain employees purchased for the period April 1 to May 31, 2005 under an optional program that enables them to invest in shares of the Company by being paid a percentage of their salary in common shares. These shares will be subject to a four-month hold period. The issuance of these shares is subject to TSX Venture Exchange approval.
Contec has granted incentive stock options to purchase up to 2,192,158 common shares of the Company at an exercise price of C$0.14 for up to five years. These options expire on June 15, 2010 and are subject to a 4-month hold-period expiring October 16, 2005. The grant of these stock options is subject to TSX Venture Exchange approval.
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 services 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".
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.
Contact:
Contec Innovations Inc.
Brian Buckley
Investor Relations
(604) 468-5638 or 1-888-552-0360
brian.buckley@contec.ca
OR
Contec Innovations Inc.
Asa Zanatta
Media Relations
(604) 408-1389
azanatta@spiritcommunications.ca
www.contec.ca
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