TORONTO, May 12 /CNW/ - Tenth Power Technologies Corp. (TSX-V:TPI) (the "Company" or "Tenth Power") announces that it intends to complete a private placement to raise gross proceeds of approximately $500,000. The private placement will consist of "units" priced at $0.15 per unit. Each unit will consist of one (1) common share and one-half (1/2) of a common share purchase warrant ("Warrant"). Each whole Warrant will be exercisable at $0.20 for a period of twelve (12) months from closing.
It is currently anticipated that certain insiders of the Company will participate in the private placement to an extent greater than 25% of the private placement. The proceeds from the private placement will be used for general working capital purposes. The private placement remains subject to definitive documentation and receipt of TSX Venture Exchange approval.
In a continuing plan to strengthen the Company's balance sheet, the Company also announces that it plans, subject to TSX Venture Exchange approval, to settle debts outstanding in the amount of $303,443.44. In connection with the settlement of these amounts, owed to non arms-length parties in the amount of $132,349.95 and $171,093.49 owed to arms length creditors, the Company has agreed to issue 2,022,957 common shares at $0.15 per common share. All securities issued in connection with the settlement are subject to a resale restriction for a period of four (4) months from the date of issue. Conversion amounts for insiders may be subject to shareholder approval at the Company's next annual general meeting, as determined by the TSX Venture Exchange.
ABOUT TENTH POWER TECHNOLOGIES CORP.
Tenth Power is a Canadian based technology and solutions company. The Company provides security based systems focused on solutions that address all aspects of data and identity security within the digital community. Tenth Power has now successfully transformed itself into an organization that provides customers the technology required to both analyze and maintain all elements of trust and integrity in their businesses.
The current issued and outstanding common shares of Tenth Power is 15,221,000.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Tenth Power Technologies Corp.
For further information: For further information: Maureen Espin, Tenth Power Technologies Corp., Tel: (905) 948-9229 ext: 177