Nstein announces that Gesca Digital Investments Ltd has the firm intention of making a $2-million private placement in the Company


    - Gesca Digital Investments Ltd plans to become Nstein's newest
      institutional investor, with a $2-million private placement.
    - An additional placement of up to $1 million is expected from Nstein
      employees and other investors, bringing the potential total of the
      transaction to $3 million.
    - The proceeds of these investments are to be used to ramp up Nstein's
      marketing efforts.

    MONTREAL, Sept. 7 /CNW Telbec/ - Nstein Technologies Inc. (TSX-V: EIN), a
leader in content management solutions for the publishing, media and
entertainment industries, today announced that Gesca Digital Investments Ltd,
a subsidiary of Gesca Ltd, has the firm intention of making a $2-million
private placement in the Company.
    In exchange for the placement, Nstein will be issuing units priced at
$0.85. Each unit will consist of one common share, one-half of one A-tranche
share purchase warrant and one-half of one B-tranche share purchase warrant.
One whole A-tranche share purchase warrant will entitle its holder to purchase
one additional common share of Nstein's share capital at a price of $1.50. One
whole B-tranche share purchase warrant will entitle its holder to purchase one
additional common share of Nstein's share capital at a price of $2.00. These
share purchase warrants will be valid for three years from the date of issue.
    The total amount of the transaction may exceed $2 million, with an
additional investment from the Company's employees and other investors over
and above that of Gesca Digital Investments Ltd. Certain Insiders of the
Company have committed to acquire 366,647 of the units. The combined amount
will be capped at $3 million. The proceeds of these investments are to be used
to ramp up Nstein's marketing efforts within the North American and European
e-publishing markets.
    The transaction is expected to close within 15 days and is subject to
customary closing conditions for this type of investment as well as the
approval of regulatory authorities.
    The price was determined following arm's-length negotiations between the
Company and Gesca Digital Investments Ltd. It represents a premium of 19.7%
over the market closing price on July 11, 2007, the day before the Company
initially applied for price protection with the TSX Venture Exchange.
    "We are very proud that Gesca Digital Investments is interested in
promoting Nstein's development. Our two groups started working together a few
years ago, when we incorporated some of our solutions into the sites belonging
to Cyberpresse, the online news network run by the Gesca group," said Luc
Filiatreault, President and CEO of Nstein Technologies Inc. "Our business
relationship today is built on these solid foundations. This injection of
capital will make it possible for us to ramp up our marketing efforts. The
expertise and reputation of the Gesca team will undoubtedly be a tremendous
asset as we continue to strengthen our position on the e-publishing market."
    Marco Dodier, President of Gesca Digital Investments, added: "Nstein
develops high-performance content management solutions specifically tailored
to online media. We are delighted to help fuel their growth by allowing them
to leverage our network of contacts and our experience as a client. This
investment is in keeping with Gesca Digital Investments' overall strategy and
mission to step up its presence in the digital market."

    About Gesca Digital Investments Ltd

    Gesca Digital Investments Ltd specializes in capital investments in new
media enterprises and the incubation of digital ventures. It plays an active
role in the development of the companies in which it invests. Gesca Digital
Investments is a division of Gesca Ltd., a media group and a wholly owned
subsidiary of Power Corporation of Canada (TSX: POW).

    About Nstein Technologies Inc.

    Nstein Technologies (TSX-V: EIN) develops and markets leading-edge
content management software for the media, publishing and entertainment
industries. Its Ntelligent Content Management Suite enables the
centralization, enrichment and publication of textual and rich media assets
using advanced text mining. Nstein helps publishers significantly increase
their content monetization and reduce their operational costs through cross
media publishing and multichannel delivery. Nstein is headquartered in
Montreal, Canada, with offices in the USA and Europe. More information is
available at www.nstein.com.

    - The TSX Venture Exchange does not accept responsibility for the
      adequacy or accuracy of this release.
    - Any statement that appears prospective shall not be interpreted as
    %SEDAR: 00014563EF

For further information:

For further information: Investor Relations: Bruno Martel, Chief
Financial Officer, Nstein Technologies Inc., (514) 908-5406,
bruno.martel@nstein.com; Media Relations: Rina Marchand, Marketing Manager,
Nstein Technologies Inc., (514) 908-5406, rina.marchand@nstein.com; Caroline
Jamet, Vice-President, Communications, Gesca Digital Investments Ltd, (514)
285-7119, cjamet@lapresse.ca

Organization Profile


More on this organization


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890