TSX Venture Exchange Trading Symbol - NIT
48,820,704 shares outstanding
MARKHAM, ON, Aug. 26 /CNW/ - Neotel International Inc. ("Neotel")
announced today that a non-brokered Convertible Secured Debenture to raise
gross proceeds of $400,000 has closed. The Debentures will be governed by
debenture certificates to be dated as of the closing date, August 22, 2008,
and will not be listed for trading on the TSX Venture Exchange or any other
The Debentures will mature, unless earlier converted into Debenture
Units, on August 22, 2010 and will bear interest of 12% per annum calculated
and payable semi annually in arrears from the closing date.
Each Debenture will be convertible at the holder's option at any time
from the closing date to maturity at $0.07 per Unit. Each Unit is comprised of
one common share and one common share warrant (a Debenture Warrant). Each
Debenture Warrant entitles the holder to purchase one common shares at a price
of $0.13 for a period of two (2) years from the date of conversion of the
The Company will have the option to redeem the Debentures at par plus
accrued and unpaid interest at any time by providing notice not less than 30
days and not more than 60 days of its intent to redeem.
All securities issued in connection with the debenture are subject to a
resale restriction for a period of four (4) months from the date of issue.
The company is restructuring operations to reduce costs and the proceeds
of the financing will be used for working capital purposes and to complete
product development projects.
ABOUT NEOTEL INTERNATIONAL INC.
Neotel International is a Canadian based technology and solutions
Company. The Company provides Bio-identity technology, Workflow and Resource
Management platforms, secure information transfer technology and innovative
product development and integration services. The company's products and
services are currently being delivered in the Government and Manufacturing
sectors and are being prepared for the Financial Services and Health Care
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Maureen Espin, Neotel International Inc., Tel:
(905) 948-9229 x28