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DRUMMONDVILLE, QC, Aug. 9 /CNW Telbec/ - CVTech Group Inc. ("CVTECH")
(Toronto Stock Exchange ("TSX") : "CVT"), is pleased to announce that the
Corporation has signed an agreement in principle with Fonds d'investissement
Actions-croissance PME Inc. ( the "ACCRO" regime ) for a private treasury
placement issue of 4,000,000 common shares of the Corporation at a price of
$1,25 per share for gross proceeds to CVTech of $ 5.0 million. The private
placement will be made pursuant to prospectus exemptions under applicable
securities legislation and is expected to close on or before August 23, 2007.
"The proceeds of this proposed offering will increase the Corporation's
working capital and will be used for general corporate purposes" adds André
Laramée, President and Chief Executive Officer of CVTech Group inc.
The proposed offering is conditional upon various conditions, including
the approval but the Toronto Stock Exchange and other regulatory authorities,
the successful application by CVTech to the Ministère du Revenu de Québec
confirming that the CVTech common shares meet the criteria of the definition
of valid shares set out in the Quebec SMB Growth Stock Plan (ACCRO), and is
subject to the Corporation and the investment fund entering into a formal
At the moment, CVTech has 50,865,000 shares in circulation. This
investment would increase its volume to 54,865,000 shares.
CVTech Group is a management corporation. Some of its subsidiaries
design, manufacture and sell continuously variable transmissions ("CVT").
Another subsidiary, Thiro Ltd. ("Thiro"), provides services for the
construction and maintenance of electrical transmission and distribution
lines. It has two (2) indirect subsidiaries: Thiro USA Inc. and J.J.L.
Déboisement inc. The subsidiary. CVTech-AAB inc. ("AAB") specializes in the
remanufacturing of crankshafts, cylinders and industrial engines.
This document may contain forward-looking statements reflecting
management's expectations with respect to future events. Such forward-looking
statements are dependent upon a certain number of factors and are subject to
risks and uncertainties. Actual results may differ from those expected. The
Company's management does not assume any obligation to update or revise these
forward-looking statements as a result of new information or future events
other than the ones required by law.
For more detailed information concerning CVTech, please consult the SEDAR
database at: www.sedar.com as well as the Company Website at:
For further information:
For further information: André Laramée, MBA, CEO, CVTechGroup Inc.,
(819) 477-3232; Mario Trahan, CMA, Chief Financial Officer, CVTech Group Inc.,