MONTREAL, Oct. 19 /CNW Telbec/ - Mitec Telecom today announced the
closing of a convertible debenture financing for $2.5 million.
Proceeds will be used for general working capital purposes with a focus
on supporting Mitec's two new products, specifically Mitec's Distributed
Antenna System (DAS) solution and Keragis' high power Solid State Power
"The launch of these products is on target as market traction has been
demonstrated and an opportunity to accelerate their introduction emerged,"
said Mr. Piergentili. "We are also pleased that Mitec has received some
interest from the international financial community as we continue to execute
on our strategy to diversify our product line".
Participants in the financing include two international institutional
investors as well as several individuals on Mitec's Board of Directors
including its CEO, Dan Piergentili.
The debentures are convertible into Common Shares of Mitec at the lower
of $0.18 and market price (subject to a $0.12 limit), are unsecured and bear
interest at 10% per annum. The debentures mature on October 17, 2009.
Subscribers also received warrants to purchase an additional 13,890,000 common
shares of Mitec at $0.18 until October 17, 2009.
About Mitec Telecom
Mitec Telecom is a leading designer and provider of radio frequency (RF)
products for the telecommunications and satellite communications industries,
as well as a variety of other sectors. The Company sells its products
worldwide to network providers for incorporation into high-performing wireless
networks used in voice and data/internet communications. Headquartered in
Montreal, Canada, the Company also operates a facility in China and in
California. Mitec Telecom Inc. is listed on the Toronto Stock Exchange under
the symbol MTM. On-line information about Mitec is available at
Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
For further information:
For further information: Daniel Piergentili, President and Chief
Executive Officer, Mitec Telecom, (514) 694-9000; Bruno Dumais,
Vice-President, Finance and Chief Financial Officer, Mitec Telecom, (514)