QUEBEC CITY, Oct. 17 /CNW/ - Medical Intelligence Technologies Inc.
(TSX-V: MIZ), a provider of innovative monitoring solutions for the mobile
telecare industry, today announced the closing of its previously announced
private placement financing of convertible debentures convertible into one
common share and one purchase warrant for gross proceeds of $1,001,000 (the
"Placement"). Canaccord Capital Corporation acted as the sole agent for this
"We are very pleased to have successfully completed this financing with
both new and current investors considering today's challenging market
conditions," said Philippe P. Huneault. "We see this as a clear vote of
confidence in our new strategic direction and the results we have demonstrated
since the implementation of our new plan in May 2008."
The convertible debentures are guaranteed by a first rank mortgage on all
the Company's moveable assets, bear an annual interest rate of 15% and mature
on November 30, 2010 instead of November 15, 2009 as previously announced.
Under the terms of the debentures, the capital amount due will be convertible
either automatically, in conformity with certain conditions described in the
debentures, or, after November 30, 2008, at the discretion of debenture
holders, in units of the Company at an assumed conversion rate of 10 cents per
unit, if the conversion takes place prior to October 17, 2010. For conversions
taking place between October 17, 2010 and November 30, 2010, the assumed
conversion rate will be 11 cents per unit. Each unit issued at the time of
conversion will consist of one common share in the Company and one purchase
warrant granting the bearer the right to purchase one common share at an
exercise price of 20 cents any time during the 24 months following the
conversion of the convertible debentures, up until November 30, 2010.
The sole agent has been compensated with a commission of $73,400, as well
as 1,001,000 broker warrants, which enable the holder to acquire one common
share at a price of 10 cents any time during the two years following the
closing of the placement. The number of broker warrants issued will amount to
10% of the total number of common shares to be issued by the Company in the
event that all of the debentures issued are converted into units.
The Company's insiders purchased a total of $180,000 in convertible
debentures. These debentures were purchased for investment purposes only, and
do not materially affect control of the Company. Participation of these
insiders would constitute a "related party transaction" within the meaning of
Multilateral Instrument 61-101 - Protection of Minority Security holders in
Special Transactions (the Instrument). However, the transaction is not subject
to evaluation and approval by minority shareholders, because, at the time the
transaction was agreed to, neither the fair market value of the subject matter
of, nor the fair market value of the consideration for, the transaction,
insofar as it involves interested parties, exceeds 25% of the issuer's market
capitalization, as per sections 5.5 and 5.7 of the Instrument. The Company was
not able to provide a notice of material change a minimum of 21 days before
the closing of the placement, as stipulated in the Instrument, given the
timelines specified for moving forward with the placement.
About Medical Intelligence Technologies Inc.
Medical Intelligence is an early innovator in the mobile telecare
industry, providing solutions that integrate information and
telecommunications technologies. The Company designs portable GPS monitoring
and locating devices that assist individuals with health or safety concerns.
Based in Quebec City, the Company also has subsidiaries in France, Spain and
the United Kingdom (Medical Mobile) where it commercializes its four
solutions: the Columba GPS Bracelet; the Vega GPS Bracelet; the PERSmobile GPS
Emergency System, and Urgentys GPS Lone Worker. For further information, visit
www.medicalintelligence.ca or www.medicalmobile.com.
Any statement in this press release that does not relate directly and
exclusively to historical facts can be considered a forward-looking statement.
Such statements reflect the intentions, plans, expectations and beliefs of
Medical Intelligence Technologies, and are subject to risks, uncertainties and
other factors that are largely beyond the Company's control, to the extent
that actual results may differ significantly from those contemplated by such
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Media Relations: Jean Brouillard, Jean
Brouillard Communications and Public Relations, (418) 682-6111,
firstname.lastname@example.org; Investor Relations: Arianna Vanin, The Equicom Group Inc.,
(514) 844-4680, email@example.com