/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION BY
ANY MEANS INTO THE UNITED STATES/
ROGERS, AR, March 6 /CNW/ - Delta Systems, Inc. ("Delta Systems" or the
"Company") (TSX-V: DLT), a leading developer of factory automation solutions
for the consumer packaged goods industry, today announced that it has engaged
Quest Securities Corporation to act on a best efforts agency basis in
connection with a private placement offering (the "Offering") of up to
4,000,000 units of securities of the Company priced at CDN$0.35 per unit, to
raise gross proceeds of up to CDN$1,400,000. The Offering has been
conditionally approved by the TSX Venture Exchange, subject to the
satisfaction of certain customary conditions, and is expected to be completed
in March, 2007. No assurance can be given that the total number of units
available under the Offering will be subscribed for, or that the Offering will
Each unit is comprised of one common share of the Company and one-half of
one common share purchase warrant. Subject to the terms and conditions
thereof, each whole warrant will entitle the holder thereof to purchase one
common share of the Company at a price of CDN$0.50 per share for a period of
24 months after the closing date of the Offering.
If the Offering is completed, the Company will use the net proceeds from
the Offering to fund working capital and for general corporate purposes.
Certain directors of Delta Systems have indicated their intention to
participate in the Offering. Pursuant to Ontario Securities Commission Rule
61-501 ("Policy 61-501"), in such event, the private placement may be
classified as a "related party transaction". The Company has determined that
exemptions from certain requirements of Policy 61-501 are available.
Pursuant to applicable securities laws, the securities offered (and the
securities issuable on the exercise thereof) will be subject to a four-month
hold period. The securities offered (and the securities issuable on the
exercise thereof) have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an exemption from the registration
requirements. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any state in which such offer, solicitation or sale would be unlawful.
About Delta Systems
Delta Systems, Inc. (TSX-V: DLT) develops factory automation solutions
for consumer packaged goods companies. The Company's comprehensive line of
automation equipment includes: high-speed flow wrappers, feeding and
distribution, and labeling and product tracking systems. Delta Systems'
PC-based motion control software, SoftFlow(TM), enhances the speed,
efficiency, precision and flexibility of automation applications on the plant
floor, while providing connectivity to other enterprise systems. The Company
offers a range of customer support services to optimize deployment,
utilization and systems integration. Delta Systems has installations with more
than 100 customers in North America and internationally, including several
Fortune 500 companies. The Company is headquartered in Rogers, Arkansas, and
has approximately 100 employees at product development and customer support
facilities in both Arkansas and Georgia. For more information, please visit:
The TSX Exchange has neither approved nor disapproved of the
information contained in this news release.
Not for distribution to U.S. newswire services.
Caution concerning forward-looking statements
Certain statements contained in this news release may constitute "forward
looking statements". When used in this news release, the words "may," "would,"
"could," "will," "intend," "plan," "anticipate," "believe," "estimate,"
"expect," and similar expressions, as they relate to Delta Systems or its
management are intended to identify forward-looking statements. Such
statements reflect Delta Systems' current views with respect to future events
and are subject to certain risks, uncertainties and assumptions. Many factors
could cause the Company's actual results, performance or achievements to be
materially different from any future results, performance or achievements that
may be expressed or implied by such forward looking statements, including
among other things, those which are discussed under the headings "Risk
Factors" and elsewhere in documents that Delta Systems files from time to time
with securities regulatory authorities. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated, believed,
estimated or expected. Delta Systems does not intend, and does not assume any
obligation, to update these forward-looking statements.
For further information:
For further information: Jake Bushey, President and Chief Executive
Officer, Delta Systems, Inc., (479) 619-2585, firstname.lastname@example.org;
Bruce Wigle, Investor Relations, The Equicom Group Inc., (416) 815-0700 ext.