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Evergreen Capital Partners leads financing
TORONTO, Oct. 1 /CNW/ - Bioscrypt Inc. (TSX: BYT), a leading provider of
identity and access management solutions, is pleased to announce today that it
has entered into a "bought deal" financing agreement and agreed to issue a
total of 12,000,000 units at a purchase price of $0.50 per unit. Bioscrypt
plans to use the proceeds of the offering for general working capital and
other corporate purposes.
Each unit will be comprised of one common share and one-half of one
common share purchase warrant. Each whole common share purchase warrant will
be exercisable to acquire one common share at a price of $0.60 per share for a
period of 24 months from closing. The Company has the right, beginning on the
date that is 180 days following the closing of the offering, to require the
holders to exercise the warrants should the 20 day volume weighted average
price of its common shares equal or exceed $0.80 per share.
The financing is being led by Evergreen Capital Partners Inc.
("Evergreen") and is subject to certain conditions, including a market out,
disaster out and a material change out provision. Bioscrypt has provided
Evergreen with an over-allotment option to increase the issue size by up to
15% for a period of 30 days from closing. The exercise of this over-allotment
option in full is subject to regulatory approval and would result in total
gross proceeds of approximately $6,900,000. The units will be offered by way
of a short form prospectus in the provinces of British Columbia, Alberta and
"With the expanded functionality of VeriSoft, the recent addition of
3D Face and the latest extensions to our line of fingerprint solutions,
Bioscrypt has taken significant strides to broaden our identity and access
management offerings," said Robert M. Douglas, President and CEO of Bioscrypt.
"The successful execution in bringing these solutions to market provides the
Company the opportunity to tailor our product suite to our target vertical
industries including, financial services, airports, seaports, government,
healthcare and the broader enterprise market. The additional capital provides
the Company a stronger balance sheet to support our efforts to pursue these
The offering is expected to close on or about October 26, 2007 and is
subject to certain conditions including, but not limited to, the approval of
the Toronto Stock Exchange and applicable securities regulatory authorities.
About Bioscrypt Inc.
Bioscrypt is an enterprise access control solution provider, enabling the
unification of physical and logical access with its Door to Desktop(R)
products. Bioscrypt's hardware and software solutions deliver strong
authentication processes to facilities, equipment, IT networks and computer
applications and allow organizations to administer unified identities across
Building on its proven expertise in biometric technology and its unique
multi-factor authentication platform, Bioscrypt integrates all major secure
authentication standards, transforming how organizations are bridging the gap
between physical and logical access to create secure working environments.
More information is available at www.bioscrypt.com.
Forward-looking (safe harbour) statement
Statements made in this news release that relate to future plans, events
or performances are forward-looking statements. Any statement containing words
such as "believes", "plans", "expects" or "intends" and other statements which
are not historical facts contained in this release are forward-looking, and
these statements involve risks and uncertainties and are based on current
expectations. These risks and uncertainties include but are not limited to
pricing competition, dependency on new product development, reliance on major
customers, customer demand for our products and services, the ability to
successfully integrate acquired companies, control of costs and expenses,
international growth, general industry and market conditions and growth rates
and general domestic and international economic conditions including interest
rate and currency exchange rate fluctuation. Consequently, actual results
could differ materially from the expectations expressed in these
Bioscrypt and Door to Desktop(R) are registered trademarks and
Veri-Series and VeriSoft are trademarks of Bioscrypt Inc. All other product
and company names mentioned are the property of their respective owners and
are mentioned for identification purposes only.
For further information:
For further information: Laura Slater, High Road Communications, (613)
688-1192, firstname.lastname@example.org; Matthew Bogart, Bioscrypt Inc., (905)