TORONTO, Jan. 6 /CNW/ - Active Control Technology Inc. (TSX-V:ACT)
announced today that Mr. Richard Hazell, Chairman of ACT (the "Seller"), an
insider of the Company, has agreed to sell, directly or indirectly, up to
5,000,000 common shares at a price of $0.06 per share through a non-brokered
The total gross proceeds of the sale of up to 5,000,000 common shares of
the Company's stock to be realized by the Seller totaling $300,000, and sold
as a swap, will be reinvested in the Company by the Seller purchasing up to
5,000,000 units (the "Units") of the Company at $0.06 per Unit under a private
placement. Each Unit will consist of one common share and one-half of a common
share purchase warrant exercisable for 24 months at $0.09 per full warrant.
The parties purchasing the 5,000,000 common shares will receive 2,500,000
warrants on a pro-rata basis out of the units subscribed for by Mr. Hazell.
Aberdeen Gould Capital Markets Ltd. (the "Agent") will receive a
commission of 10% cash of the amount raised (which the Agent will reinvest in
the form of Units) and 10% in compensation units having the same
characteristics of the Units.
The insider private placement is exempt from the valuation and minority
shareholder approval requirements of Multilateral Instrument 61-101 ("MI
61-101") by virtue of the exemptions contained in section 5.5(a) and 5.7(1)(a)
of MI 61-101 in that the fair market value of the consideration for the
securities of the Company to be issued to the insider does not exceed 25% of
its market capitalization.
The net proceeds of the financing will be used for working capital
About Active Control Technology
ACT designs and markets wireless network control and communication
systems for buildings and extreme environments. Located in Burlington,
Ontario, Canada, the company trades publicly on the TSX Venture Exchange under
the symbol ACT. For more information, visit the company's website at
We make wireless work.(TM)
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Steve Barrett, President & C.E.O., Active
Control Technology Inc., Tel.: (905) 670-5500 ext. 202, Fax: (905) 592-9691,
Email: email@example.com, Website: www.activecontrol.com; Don
Hogarth, Hogarth Communications Inc., Tel.: (416) 565-8920, Email: