MONTREAL, March 5 /CNW Telbec/ - Cycle Capital Fund I, L.P. ("Cycle") announced today that on August 26, 2009, it acquired ownership and control over greater than 10% of the issued and outstanding common shares of ProSep Inc. (the "Issuer") (TSX: PRP).
In connection with such holdings, Cycle has inadvertently failed to make certain necessary filings as required under applicable securities laws, and is currently taking the steps to fulfill such filing requirements. Cycle will be filing an Early Warning Report as prescribed under applicable Canadian securities laws in connection with this release.
Immediately prior to August 26, 2009, Cycle owned 10,840,121 common shares of the Issuer representing 8.60 % of the issued and outstanding common shares of the Issuer. On August 26, 2009, Cycle acquired 15,384,615 common shares of Issuer at $0.13 per share, representing approximately 9.42% of the issued and outstanding common shares of the Issuer for a total consideration of $2,000,000, pursuant to a rights offering by the Issuer in accordance with a short-form prospectus dated July 14, 2009. As at March 4, 2010, Cycle owns 26,224,736 common shares representing approximately 16.06% of the outstanding common shares of the Issuer. Cycle has not traded in the securities of the Issuer since the completion of the rights offering. Pursuant to a written agreement between Cycle and the Issuer, Cycle has a right to have one observer present at all meetings of the board of directors of the Issuer.
Depending on market conditions and other factors, Cycle may from time to time acquire additional securities of the Issuer or dispose of such securities in the open market, by private agreement or otherwise.
SOURCE Cycle Capital Management
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