Extenway Solutions completes its private placement of $500,000 and the settlement of debts for $1,500,000

    MONTREAL, Aug. 28 /CNW Telbec/ - Extenway Solutions Inc. (TSX-V: EY)
("Extenway" or the "Corporation") announces the conclusion of a private
placement and the settlement of debts with three major shareholders, as
announced last August 6.
    Under the terms of the transactions, the Corporation reimburses
$1,500,000 of debts to John McAllister Holdings Inc. ("Holdings"), to
Primonics, a subsidiary of Holdings, and to David Brown by the issuance of
24,999,999 common shares of the Corporation at a deemed price of $0.06 per
share; and issues to Innovatech Québec and Chaudière-Appalaches
('Innovatech"), 8,333,333 common shares of the Corporation at a price of $0.06
per share for a consideration of $500,000. Together with expected cash flows
from sales achieved under the previously announced contracts with Canyon Ranch
Resorts & Hotels and Legendary Inc., this private placement and the settlement
of debts are expected to provide Extenway with the financial means to execute
its business and development plan for the next two quarters at the current
burn rate. Management expects that during that time ongoing discussions with
other potential clients will translate into orders leading to sales ramping up
during the following quarters. The Corporation will need continued future
finance, but expects new orders to improve availability and terms of such

    The three major shareholders involved in these transactions are:

    - John McAllister Holdings Inc., ("Holdings") a corporation controlled by
      John McAllister, Extenway's Chief Executive Officer and a director of
      the Corporation, which, prior to this stock issue, held 9,284,694
      common shares or 19.2% of total Extenway shares outstanding; Holdings
      accepted to convert an amount of $500,000 due to it for services
      performed by Holdings and Primonics Inc., it's subsidiary, in the
      course of the past year. The debt was converted into 8,333,333 common
      shares, at a deemed price of $0.06 per share.
    - David Brown, Chief Financial Officer of Extenway, who already held
      3,766,667, or 7.8% of Extenway common shares outstanding, accepted to
      convert $1,000,000 of unconditional, non interest-bearing cash advances
      made in the course of the past year into 16,666,667 common shares, at a
      deemed price of $0.06 per share.
    - Innovatech, an early stage venture capital fund, which held 21,503,183
      or 44.5% of Extenway common shares outstanding prior to the
      transactions; Innovatech has acquired 8,333,333 common shares for a
      total cash consideration of $500,000, at a price of $0.06 per share. In
      accordance with securities rules these shares must be held until
      December 28, 2007.

    Following the placement, Extenway has 81,643,001 common shares issued and
outstanding. Holdings holds 17,618,027 common shares, being 21.6% of Extenway
shares issued and outstanding; David Brown holds 20,433,334 common shares,
being 25.0% of Extenway shares issued and outstanding; and Innovatech holds
29,836,516 common shares, being 36.6% of Extenway shares issued and

    About Extenway Solutions Inc.

    Extenway is a provider of guest-centric solutions for the Hospitality
industry that help clients differentiate their properties and services by
improving the quality of their guest experience. Extenway solutions allow
hospitality organizations to intelligently manage and coordinate all in-room
guest interactions with key sales and marketing initiatives. For more
information, visit www.extenway.com.

    About Innovatech Québec and Chaudière-Appalaches

    Innovatech Quebec and Chaudière-Appalaches is a $125 million early stage
venture capital fund owned by the Government of Québec. Innovatech invests in
emerging technology-intensive companies in Information technology and
telecommunications, life sciences, and advanced applied technologies.

    Disclaimer - Safe Harbour Forward -Looking Statements

    Certain statements contained in this press release constitute
forward-looking statements. These forward-looking statements relate to the
future financial conditions, results of operations or business of the Company.
These statements may be current expectations and estimates about the markets
in which Extenway Solutions Inc. operates and management's beliefs and
assumptions regarding these markets. These statements are subject to important
risks and uncertainties which are difficult to predict and assumptions which
may prove to be inaccurate. The results or events predicted in forward-looking
statements may differ materially from actual results or events. The Company
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events, or
otherwise. In particular, forward-looking statements do not reflect the
potential impact of any merger, acquisitions or other business combinations or
divestitures that may be announced or completed after such statements are

    The TSX Venture Exchange Inc. does not accept responsibility for the
    adequacy or accuracy of this release.
    %SEDAR: 00022035EF

For further information:

For further information: Mr. John McAllister, President and CEO,
Extenway Solutions Inc., (514) 694-1916, Fax: (514) 694-4280

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