Vancouver, BC, April 14, 2005--IP Applications Corp. today announced a non-brokered private placement led by Pender Growth Fund Inc., of 2,424,242 common shares at a price of $0.33 per shares for gross proceeds of $800,000.
In addition, each placee in this offering who holds previously issued, non-expired warrants of the Company will be entitled to surrender the warrants that entitle them to purchase up to the number of common shares issued to them under this offering and receive an equal number of the warrants entitling the placee to purchase one additional common share at $0.35 per share for a period of 12 months from the closing and at $0.40 per share for the period 12 to 24 months from closing.
Under the financing completed in December 2004, the Company issued cashless put warrants entitling PGF to receive a payment of up to 333,333 common shares (on a post-consolidated basis) subject to certain conditions. The Company has agreed to waive the conditions and to issue 333,333 common shares to PGF simultaneous with the closing of this offering in full satisfaction of its obligations under the cashless put warrant.
The Company will use the proceeds to fund North American sales and marketing efforts, build and deliver new services, and for working capital purposes. This financing is subject to completion of formal documentation and receipt of regulatory approval.
The Company is pleased to announce the appointment of Mr. David Roberts to the board of directors effective immediately. Mr. Roberts is the CEO of PenderFund Capital Management Ltd, the manager of PGF.
The Company also announces the resignations of Mr. John Darch and Mr. Curt Cranfield from the board of directors effective today and thanks them for their contributions to date.
About IP Applications
IP Applications sells and licenses products, services and software to leading North American Service Providers in Telecommunications, Cable and Power as well as to ISPs and Enterprises. The combination of carrier grade facilities, mass provisioning capabilities and dedicated technical and sales professionals makes IP Applications a trusted strategic partner. Our 24/7 multilingual help desk can be offered to our customers and their subscribers as a personalized complement to a wide variety of IP products from traditional applications and network support services to the latest Broadband over Power Lines.
Forward Looking Statements
The press release may contain forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties. Forward-looking statements are based on management's estimates, beliefs and opinions. The company assumes no obligation to update forward looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information
Brian Ellis, Investor Relations, TF 1-877-604-7277, D (604) 525-2554, bellis@ipapp.com