Pay Linx Financial Corporation announces closing of short form prospectus offering



    /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
    SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

    EDMONTON, July 3 /CNW/ - Pay Linx Financial Corporation (TSX-V: PIN)
("Pay Linx") is pleased to announce that it has closed the public offering
(the "Offering") of units (the "Units"), by way of a short form prospectus,
announced on June 20, 2008. The Offering consisted of 11,902,000 Units at
$0.25 per Unit for gross proceeds of $2,975,500. Each Unit consists of one
common share (a "Common Share") in the capital of Pay Linx and one-half of one
Common Share purchase warrant (a "Warrant"). Each whole Warrant is exercisable
into one Common Share at $0.50, at any time on or before 4:30 p.m. (Calgary
time) on January 3, 2010; provided that the Warrants will be subject to a call
right of Pay Linx to call upon the holders of the Warrants for the exercise of
their Warrants at any time after January 3, 2009 if, and only if, the closing
prices of the Common Shares for each of 10 consecutive trading days on the TSX
Venture Exchange are not less than $0.55. The Offering was led by Blackmont
Capital Inc.
    Pay Linx intends to use the net proceeds of the Offering to, among other
things:

    
    1.  continue to market the Pay Linx product to provincial governments
        with the support of the Royal Bank of Canada ("RBC") using the
        QuickLinx(TM) brand,

    2.  execute the pilot project with a large Canadian insurance provider
        for a Health Care Spending Account (HCSA),

    3.  target corporate and other clients engaged in businesses that have
        large numbers of payments, and

    4.  develop additional features and enhancements to Pay Linx's
        proprietary payment services application in order to carry out the
        foregoing activities.
    

    About Pay Linx

    Pay Linx is engaged in developing a business of payment issuing and
processing services to corporations and governments. Pay Linx's services
deliver payment processing that is integrated with the Interac and MasterCard
payment networks in North America. RBC holds a substantial investment in Pay
Linx and Pay Linx has agreed to provide services exclusively to RBC, which are
intended to be used by Canadian governments to replace cheque and voucher
payments through QuickLinx(TM). In addition, Pay Linx, through Bank West, a
Canadian financial institution, and Palm Desert National Bank, a United States
financial institution, is developing financial payment solutions for corporate
and other clients to transact with their customers.
    Pay Linx has developed the services and infrastructure that enable its
clients to replace cash and cheque payment transactions with electronic
payments. Pay Linx's services provide instant payment distribution by which
its clients or customers of its clients issue and, from time to time, fund
prepaid Interac or MasterCard services to recipients in real time. The
recipients have a payment card and a personal identification number for use at
an Interac and MasterCard terminal, by which the funds can be instantly
accessed.
    Pay Linx employs contemporary automated teller machine (ATM), point of
sale (POS) and online technologies. Pay Linx has developed a platform for
processing and managing accounts and payment cards, including cardholder and
customer account management, reconciliation and financial settlement, and
customer reporting.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy and accuracy of this release.

    Not for dissemination in the United States of America. This news release
shall not constitute an offer to sell or the solicitation of any offer to buy
securities of Pay Linx in any jurisdiction, including the United States. The
common shares of Pay Linx have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws and have not been and will not be offered or sold
in the United States or to any U.S. person except in certain transactions
exempt from the registration requirements of the U.S. Securities Act and
applicable state securities laws.

    Certain statements contained herein constitute forward-looking
statements. Such statements relate to future events or Pay Linx's future
performance. Forward-looking statements often, but not always, are identified
by the use of words such as "seek", "anticipate", "believe", "plan",
"estimate", "expect", "target" and "intend" and statements that an event or
result "may", "will", "should", "could" or "might" occur or be achieved and
other similar expressions. The forward-looking statements that are contained
herein involve a number of risks and assumptions. Also there is no assurance
that the assumptions underlying the forward-looking statements will be
attained and variances could be material. As a consequence, actual results
might differ materially from results forecast or suggested in these
forward-looking statements. Except as required under applicable securities
legislation, Pay Linx does not undertake any obligation to publicly update or
revise any forward-looking statements.





For further information:

For further information: Ian McNeill, President and CEO, Pay Linx
Financial Corporation, Tel: (780) 702-4710, Email: ian.mcneill@paylinx.ca,
www.paylinx.ca; Marshall Rosichuk, CMA, CFO, Pay Linx Financial Corporation,
Tel: (780) 702-4702, Email: marshall.rosichuk@paylinx.ca, www.paylinx.ca

Organization Profile

PAY LINX FINANCIAL CORPORATION

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