Vancouver, BC, December 19, 2005--(T-Net)--Photon Control announced today that it has closed its private placement of 11,250,000 units at $0.40 per unit for gross proceeds of $4.5 million.
Each unit consisted of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant may be exercised to acquire one common share of the Company at $0.55 for a period of 18 months from closing
In connection with the private placement, the Company paid M Partners Inc. and Fraser Mackenzie Limited (together, the "Agents") a commission of 9% in cash and issued Agents' warrants to purchase up to 900,000 units at $0.40 per unit. The Agents' warrants will be exercisable for a term of 18 months and the units underlying the Agents' warrants will have the same terms as the units offered under the private placement.
The common shares and warrants comprising the units and the common shares underlying the agents' warrants issued under the private placement are subject to a 4 month hold period from closing.
The Agents have the right to exercise a 30 day over allotment option pursuant to which the Company may issue up to an additional 1,250,000 units which, if exercised, would raise up to an additional $500,000.
The net proceeds from the private placement will be used to finance the Company's operational and development plans and provide operating capital for 2005-2006.
About Photon Control Inc. www.photon-control.com
Photon Control Inc. develops products that use light (photons) for measurement and control, using the inherent advantages of light over electricity. Photon's products offer improvements in cost, performance and safety.
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For further information
Company Contact: Lauren Blair, Investor Relations, (604) 422-8861, lblair@photon-control.com