Active Control Signs Term Sheet for a Revolving Credit Facility of up to $2,250,000



    
    Company Initiates Non-Dilutive Financing Through Purchase Orders and
    Current Assets

    TSX-V: ACT
    

    TORONTO, June 17 /CNW/ - Active Control Technology Inc. (TSX-V: ACT)
announced today that the Company has signed a term sheet with Callidus Capital
Corporation (Callidus) of Toronto, Canada for a revolving credit facility of
up to $2,250,000.
    The facility will provide inventory financing for purchase orders, as
well as additional working capital through borrowing against their current
assets: accounts receivable, inventory and raw materials. Under the proposed
arrangement, the facility would be structured as a 12 month demand loan
bearing an annual interest rate of 18%. Interest is only payable on the amount
drawn down on the facility.
    The principal amount of the loan and any unpaid interest due will be
payable at the end of the 12 month term. The Company can prepay the facility
at any time for the payment of a fee of 2% of the facility. The facility will
be secured against all of the assets of the Company. In addition, the Company
has the ability to request a larger facility to accommodate additional
purchase orders of the ActiveMine(TM) systems.
    The proposed facility is expected to close within four (4) weeks and is
subject to Callidus' satisfactory due diligence, internal approvals and
execution of final legal documentation. Readers are cautioned that should
there be a successful close of this facility, this does not guarantee the
Company's access to a portion of, or any of the funds from, the facility. Any
advance under the facility will be solely based upon the availability margin
tests of the balance sheet of the Company and orders in hand at the time the
facility agreement is executed.
    Aberdeen Gould Capital Markets Ltd. of Toronto, Canada, will receive a
cash commission of one and a half percent (1.5%) based upon the aggregate loan
facility available to the Company over the term of the arrangement.

    About Callidus Capital Corporation

    Callidus Capital Corporation established in 2003, is a privately held
Canadian company that specializes in innovative and creative funding
solutions. For more information, visit www.calliduscapital.ca

    About Active Control Technology

    Active Control Technology is a mining services company specializing in
advanced wireless productivity and safety systems. The company's MSHA-approved
ActiveMine system provides two-way wireless voice communication, real-time
tracking of personnel and assets, and high bandwidth data applications such as
streaming video and operational data from mining machinery, over a robust
wireless Wi-Fi network. Located in Burlington, Ontario, Canada, Active Control
trades publicly on the TSX Venture Exchange under the symbol ACT. For more
information, visit www.activecontrol.com

    
                       Get more out of your mine.(TM)

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

    Cautionary Note Regarding Forward-Looking Statements: This press release
contains forward-looking statements that involve risks and uncertainties,
which may cause actual results to differ materially from the statements made.
When used in this document, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "estimate", "expect" and similar
expressions are intended to identify forward-looking statements. Such
statements reflect our current views with respect to future events and are
subject to such risks and uncertainties. Many factors could cause our actual
results to differ materially from the statements made, including those factors
discussed in filings made by us with the Canadian securities regulatory
authorities. Should one or more of these risks and uncertainties, such as
changes in demand for and prices for the products of the Company or the
materials required to produce those products, labour relations problems,
currency and interest rate fluctuations, increased competition and general
economic and market factors, occur or should assumptions underlying the
forward looking statements prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated, or expected. We
do not intend and do not assume any obligation to update these forward-looking
statements, except as required by law. The reader is cautioned not to put
undue reliance on such forward-looking statements.

    %SEDAR: 00007946E




For further information:

For further information: Steve Barrett, President & CEO, Active Control
Technology, Tel.: (905) 635-3130, Email: sbarrett@activecontrol.com; Media
inquiries for ACT: Don Hogarth, Tel.: (416) 565-8920, Email:
don@hogarthpr.com

Organization Profile

ACTIVE CONTROL TECHNOLOGY INC.

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