QUEBEC CITY, Sept. 23 /CNW/ - Medical Intelligence Technologies Inc.
(TSX-V: MIZ), a provider of innovative monitoring solutions for the mobile
telecare industry, today announced its intent to conclude a private placement
financing of convertible debentures valued at a minimum of $1,000,000 over the
next few weeks. The Company expects to use the net proceeds of the private
placement to meet future working capital requirements and implement its
The convertible debentures will be guaranteed by a first mortgage on the
Company's moveable assets, bear an annual interest rate of 15% and mature on
November 15, 2009. The debentures are convertible into units of the Company
after November 15, 2008 at a price of $0.10 per unit or automatically in
accordance with certain conditions described in the debentures. Each unit 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
$0.20 any time during the 24 months following the private placement.
Canaccord Capital Inc. will act as a sole agent for the placement and
will receive a commission of up to 10% of the gross proceeds. Canaccord will
also receive compensation options entitling it to purchase up to 10% of the
total number of units sold under the private placement at a price of $0.20 per
unit, exercisable within two years of the closing of the offering.
The closing of the placement is subject to certain customary conditions,
including the approval of the TSX Venture Exchange.
A number of company insiders may participate in this private placement by
subscribing to debentures. Participation of these insiders would constitute a
"related party transaction" within the meaning of Multilateral Instrument
61-101 - Protection of Minority Securityholders 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.
%SEDAR: 00020559EF C7635
For further information:
For further information: Arianna Vanin, Investor Relations, The Equicom
Group Inc., (514) 844-4680, email@example.com