MONTREAL, March 30 /CNW Telbec/ - Mitec Telecom Inc. (TSX: MTM) announced
today it has completed a private placement involving the sale of 19 million
units of the Company at a price of $0.18 per unit for gross proceeds of
$3.47 million. The net proceeds of this proposed private placement will be
used for working capital and potential acquisition purposes.
According to Dan Piergentili, Mitec's President and Chief Executive
Officer, "Mitec's restructuring program remains on track, as the recently
reported third quarter financials demonstrate."
"At the same time, several business development initiatives are underway
and having some additional working capital available will provide Mitec with
the flexibility to effectively accomplish our objectives, while retaining a
solid cash balance to support our ongoing business segments in both Satcom and
Mitec's cash position at January 31, 2007 was approximately $6.4 million.
Mr. Piergentili continued, "Mitec is in the process of introducing a new
high power Distributed Antenna System (DAS) product to the market. The
high-power DAS is a way for operators to provide coverage in areas where
traditional base station cannot be deployed. DAS provides coverage and
capacity benefits to multiple wireless providers via a single fiber
distribution backbone. This allows the operators to improve network
performance in traditionally problematic areas at much lower cost."
Howson Tattersall Investment Counsel Ltd., which already controls 11.41%
of Mitec's outstanding common shares, participated in the private placement by
subscribing for 3.5 million units.
Each unit consists of one common share and one common share purchase
warrant, with each warrant entitling the holder to acquire one additional
common share at a price of $0.22 per share for a period of two years. If the
closing price of Mitec's common shares is equal to or exceeds $0.35 for a
period of 20 consecutive trading days, Mitec may notify the holders that it
intends to trigger the exercise of any outstanding warrants, failing which,
the warrant would expire. Additional proceeds raised under the warrant
exercise would be up to a maximum of $4.25 million. The units were issued
pursuant to applicable prospectus and registration exemptions and will be
subject to a four-month hold period.
The private placement received all necessary approvals, including that of
the Toronto Stock Exchange and satisfied all other customary conditions.
About Mitec Telecom
Mitec Telecom is a leading designer and provider of radio frequency (RF)
products for the telecommunications and satellite communications industries,
as well as a variety of other sectors. The Company sells its products
worldwide to network providers for incorporation into high-performing wireless
networks used in voice and data/internet communications. Headquartered in
Montreal, Canada, the Company also operates facilities in China.
Mitec Telecom Inc. is listed on the Toronto Stock Exchange under the
symbol MTM. On-line information about Mitec is available at www.
Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
For further information:
For further information: Dan Piergentili, President & CEO, Mitec
Telecom: (514) 694-9000; Bruno Dumais, Finance & CFO, Mitec Telecom: (514)