TSX Venture Exchange: VSI
VANCOUVER, Feb. 22 /CNW/ - VendTek Systems Inc. (TSX-V: VSI, the
"Company") is pleased to announce that it has closed the brokered
portion of its previously announced private placement of units (the
"Units"). The Company completed the sale of 2,500 Units for gross
proceeds of $2,500,000 (the "Brokered Offering"). Each Unit consists
of one 6% unsecured convertible debenture of the Company having a
principal amount of $1,000 and 500 common share purchase warrants (the
"Warrants"). Subject to adjustment, each Warrant is exercisable for
three years from the closing to purchase one common share at a price of
The Warrants provide that if the closing average trading price of the
Company's common shares for a period of 20 consecutive trading days
exceeds $1.50, then the Company may provide notice to the holders of
the Warrants that they have only 30 days to exercise the Warrants or
they will expire.
The Brokered Offering is subject to regulatory approval and all
securities issued in connection with the Brokered Offering are subject
to a four-month and one day hold period under applicable securities
As compensation to Versant Partners Inc. and MGI Securities Inc.
(together, the "Agents") for their services in connection with the
Brokered Offering, the Corporation has paid to the Agents a cash fee of
The net proceeds from the sale of the Units will be used for general
working capital purposes and to continue the Company's expansion plans
in its Brazilian operations.
VendTek develops and licenses automated transaction system software and
supporting technologies. VendTek's customers, subsidiaries and its Now
Prepay division use e-Fresh™ software to build electronic, prepaid
services networks that enable consumers to purchase prepaid products
and services via POS and self-serve terminals connected to a central
server. This system creates significant value through improved
efficiencies compared to a traditional distribution model. e-Fresh™
reduces shrinkage and inventory requirements for vendors while
improving consumer access to prepaid products and services by
completely eliminating physical cards and vouchers. VendTek has
deployed its software around the world including Canada, United States,
Asia, the Middle East and Africa. For further information please visit
the Company's websites www.vendteksystems.com and www.nowprepay.com.
This news release contains statements which are not current statements
or historical facts and are "forward-looking information" within the
meaning of applicable Canadian securities laws. All statements, other
than statements of historical fact, contained in this news release
constitute forward-looking information. Wherever possible, words such
as "plans", "expects" or "does not expect", "budget", "forecasts",
"projections", "anticipate" or "does not anticipate", "believe",
"intent", "potential", "strategy", "schedule", "estimates" and similar
expressions or statements that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved and other similar expressions have been used to identify
forward-looking information. These forward-looking statements relate
to, among other things the Company's expectations regarding use of
proceeds from the Brokered Offering.
Although the forward-looking information in this news release reflects
the Company's current beliefs on the date of this news release based
upon information currently available to management and based upon what
management believes to be reasonable assumptions, the Company cannot be
certain that actual results, performance, achievements, prospects and
opportunities, either expressed or implied, will be consistent with
such forward-looking information. By its very nature, forward-looking
information necessarily involves significant known and unknown risks,
assumptions, uncertainties and contingencies that may cause the
Company's actual results, assumptions, performance, achievements,
prospects and opportunities in future periods to differ materially from
those expressed or implied by such forward-looking information. These
risks and uncertainties include, among other things, revenue growth,
operating results, the market demand for our products, product
development, and litigation as well other factors described in the
Risks Related to Our Business Section in our 2010 annual Management
Discussion and Analysis. There may be other factors that cause results,
assumptions, performance, achievements, prospects or opportunities in
future periods not to be as anticipated, estimated or intended.
There can be no assurances that forward-looking information and
statements will prove to be accurate, as many factors and future
events, both known and unknown could cause actual results, performance
or achievements to vary or differ materially, from the results,
performance or achievements that are or may be expressed or implied by
such forward-looking statements contained in this news release.
Accordingly, all such factors should be considered carefully when
making decisions with respect to the Company, and prospective investors
should not place undue reliance on forward-looking information. The
Company assumes no obligation to update or revise forward-looking
information to reflect changes in assumptions, changes in circumstances
or any other events affecting such forward-looking information, except
as required by applicable law.
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 VendTek Systems Inc.
For further information:
Samantha White at 604-805-4653 or 1-800-806-4958 or firstname.lastname@example.org.