TORONTO, Oct. 29 /CNW/ - Cencotech Inc. (CTZ - TSX-V) today announces the closing of a non-brokered private placement of 5,000,000 common shares at $0.05 per share. The shares issued under the placement many not be traded until after February 28th, 2010. Proceeds of $250,000 will be used for working capital purposes. There were no fees, bonuses, commissions nor other securities issued in connection with the private placement. Seventy percent of the issue was purchased by insiders of the Corporation.
The Company also announces the completion of an extension agreement with its convertible debenture holder for one year to September 30, 2010 and a further extension of its secured loan facility in favour of its wholly owned subsidiary, NamSys Inc. to September 30, 2010.
K. Barry Sparks, the President of Cencotech, stated "We are pleased to announce the extension of our debt instruments through September 30, 2010 and to have raised additional working capital to assist the Company in reaching its sales objectives. As we have noted previously, notwithstanding the recessionary environment, we are making progress in closing orders to deliver both software and hardware products to our customers. While these may not be reflected in our current fiscal year ending October 31, 2009, the strengthening of the order book augers well for fiscal 2010."
Cencotech Inc. products are designed to bring efficiency to the processing of currency and other value instruments in financial institutions, large retailers, public transportation operations and the gaming industry. Cencotech's proprietary software products for this market are "open-architectured" and have been developed to interface with clients' legacy systems.
The TSX Venture Exchange has neither approved nor disapproved of the information contained in this release. This Media Release contains forward-looking statements, which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ from those projected herein and depend on a number of factors including the success of the Corporation's sales strategies.
SOURCE Cencotech Inc.
For further information: For further information: Mr. K. Barry Sparks, President, (416) 369-6081, mailto:firstname.lastname@example.org