(TSX: NTI; OTCBB: NTLNF)
TORONTO, March 31 /CNW/ - Northcore Technologies Inc. (TSX: NTI;
OTCBB:NTLNF), a global provider of core asset solutions, confirmed today that
it has closed a private placement securing gross proceeds of $525,000 through
the issuance of convertible debentures. The funds will be used to sustain
Northcore's operations and for general working capital purposes.
Under the terms of the private placement, investors will be able to
convert the Series L debentures at any time during the five-year term into
units priced at $0.10. Each unit consists of one common share and one warrant.
Each warrant may be converted into a common share at the exercise price of
$0.15 at any time prior to the earlier of the maturity date of the debentures
or upon a 60-day notice issued by the company confirming that the closing
price of its shares on the TSX was $0.36 or above for 10 consecutive trading
The Series L debentures will mature on March 31, 2013. Northcore will pay
investors 10 percent interest per annum, paid annually, for unconverted
debentures. Interest payments for the first two years will be payable through
the issuance of common shares.
Northcore's board of directors considered the financing arrangements and
unanimously passed a resolution approving the terms. Northcore has also
received conditional approval from the TSX for the private placement.
As a result of the Series L private placement, Northcore will issue up to
11,550,000 common shares.
A commission of four percent of the gross proceeds was paid to Dundee
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 securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of such
About Northcore Technologies Inc.
Northcore Technologies provides core asset solutions that help
organizations source, manage and sell their capital equipment. Northcore works
with a growing number of customers and partners in a variety of sectors
including oil and gas, government, and financial services.
Current customers include GE Commercial Finance, Paramount Resources and
Trilogy Energy Trust.
Northcore owns a 50 percent interest in GE Asset Manager, a joint
business venture with GE.
This news release may include comments that do not refer strictly to
historical results or actions and may be deemed to be forward-looking within
the meaning of the Safe Harbor provisions of the U.S. federal securities laws.
These include, among others, statements about expectations of future revenues,
cash flows, and cash requirements. Forward-looking statements are subject to
risks and uncertainties that may cause Northcore's ("the Company") results to
differ materially from expectations. These risks include the Company's ability
to raise additional funding, develop its business-to-business sales and
operations, develop appropriate strategic alliances and successful development
and implementation of technology, acceptance of the Company's products and
services, competitive factors, new products and technological changes, and
other such risks as the Company may identify and discuss from time to time,
including those risks disclosed in the Company's Form 20-F filed with the
Securities and Exchange Commission. Accordingly, there is no certainty that
the Company's plans will be achieved.
For further information:
For further information: At Northcore Technologies Inc., Joe Racanelli,
Chief Marketing Officer, Tel: (416) 640-0400 ext. 273, Fax: (416) 640-0412,