Proceeds Will Support Expanded Sales and Product Line, and Acquisitions
TSX Venture Exchange symbol: FOX
TORONTO, Feb. 1 /CNW Telbec/ - Fiber Optic Systems Technology, Inc.
("FOX- TEK" or the "Company"), (TSX-V: FOX), a developer and manufacturer of
patented non-intrusive sensing systems, today announced a non-brokered private
placement (the "Offering") to raise gross proceeds to the Company of up to
$3,000,000 by the issuance of units at $0.30 per unit. Each unit consists of
one common share of FOX-TEK and one-half of one warrant. Each whole warrant
entitles the holder to acquire one common share of the Company at any time
within twenty-four (24) months from the closing date of the Offering at a
price of $0.50 per common share.
The Company has agreed to pay a finder's fee equal to 9.6% of the
aggregate gross proceeds of the Offering payable by way of issuance of units
on the same terms and conditions as applicable to the units sold pursuant to
the Offering and to issue finder's units equal in number to 12% of the number
of units sold under the Offering at $0.30 per finder's unit. Each finder's
unit will have the same characteristics as the units in the Offering.
The proceeds from the private placement will be used for working capital
and to support possible acquisitions.
As part of the 2008 employee compensation plan, FOX-TEK granted
290,000 options to six members of management on January 28, 2008. These
options vest over three years in equal annual installments, have a term of
five years and have an exercise price of $0.25, being the closing price of the
FOX-TEK shares on January 25, 2008.
Fiber Optic Systems Technology, Inc. "FOX-TEK" develops non-intrusive
asset health monitoring sensor systems for the oil and gas market to help
operators track the thinning of pipelines and refinery vessels due to
corrosion/erosion, strain due to bending/buckling, and process pressure and
temperature. FOX-TEK's FT fiber optic sensor and Pinpoint systems allow
cost-effective, 24/7 remote monitoring capabilities to improve scheduled
maintenance operations, avoid unnecessary shutdowns, and prevent accidents and
FOX-TEK has offices in Toronto, ON; Calgary, AB; Montreal, QC; Houston,
TX; and Al-Khobar, Saudi Arabia. FOX-TEK is traded on the TSX Venture Exchange
under the symbol "FOX". For more information, visit www.fox-tek.com.
This press release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future events.
Actual results may differ materially from those currently anticipated.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements
are detailed from time to time in FOX-TEK's periodic reports filed with the
Ontario Securities Commission and other regulatory authorities. FOX-TEK has no
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
For further information:
For further information: FOX-TEK Company contact: Dr. Essam Zaghloul,
president and CEO, Fiber Optic Systems Technology, Inc., (416) 665-2288,
firstname.lastname@example.org; Investor Relations contact: Renmark Financial
Communications Inc.: Barry Mire, email@example.com; Christine
Stewart, firstname.lastname@example.org, (514) 939-3989, Fax: (514) 939-3717,