Feb. 25, 2008 - Municipal Solutions Group, Inc. (TSX VENTURE:MSZ) ("Municipal") announces that it has now closed its previously announced private placement of $1,000,000 principal amount of 12% secured convertible debentures (the "Debentures"). The purchasers of the Debentures were Pender Growth Fund (VCC) Inc. and a company controlled by a director of Municipal.
The Debentures bear interest at the rate of 12% per annum and interest is payable monthly, in arrears. The Debentures will mature on August 25, 2009 and repayment of all principal and interest will be secured by a general security interest over all of the assets of both Municipal and its wholly-owned subsidiary, Municipal Software Corporation.
Beginning on August 25, 2008, the principal amount of the Debentures is convertible, at the option of the holder, into common shares of Municipal at a price of $0.25 per share, subject to adjustment in certain specified circumstances. The Debentures may be prepaid by Municipal at any time, without penalty, subject to certain notification and minimum prepayment requirements.
The securities issued are subject to a hold period and may not, subject to certain exceptions, be traded until June 26, 2008.
Dennis Asbury, President and Chief Executive Officer of Municipal, commented, "This financing put us in a favorable cash flow position, the market continues to reward us with new deals, and we are excited about the future. We appreciate the confidence shown by these investors."
About Municipal Solutions Group, Inc.
Municipal Solutions Group, Inc. was formed in January 2002 as the public financing arm for Municipal Software Corporation.
About Municipal Software Corporation
Municipal Software Corporation (TSX VENTURE:MSZ) provides easily installed, packaged software solutions that manage the everyday business processes of local governments. The solutions are based on 24 years of experience with a product platform that easily adapts to the changing practices of clients. Branded under the CityView name, the company provides a number of out of the box solutions automating practices in Property Information, Permits and Inspections, Planning, Code Enforcement, Licensing and Cashiering. CityView Application Builder is a set of application development tools that allows the client to develop unique applications to match specific needs. Municipal Software offers a complete range of services from training and customer support of its suite of products to custom development for unique applications.
Forward-Looking Statements
Certain statements in this news release are not historical and may constitute forward-looking statements reflecting Municipal Solutions Group, Inc.'s current expectation in the local government sector. These statements are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual events or results.
FOR FURTHER INFORMATION PLEASE CONTACT:
Municipal Software Corporation
Dennis J. Asbury
President & CEO
(250) 475-6600 ext. 268
Email: Media@MunicipalSoftware.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.