Three major shareholders of Extenway Solutions inject $2 million into the Corporation's equity

    MONTREAL, Aug. 6 /CNW Telbec/ - Extenway Solutions Inc. (TSX-V: EY)
("Extenway" or the "Corporation") announces that three major shareholders are
injecting $2 million into the equity of the Corporation under a private
placement. Closing is expected on or about August 14, 2007.
    The placement will allow the Corporation to reimburse $1,500,000 of debt
and add $500,000 to its working capital, thus improving both shareholders'
equity and its working capital position. Together with expected cash flows
from sales achieved under the previously announced contracts with Canyon Ranch
Resorts & Hotels and Legendary Inc., this share issue is 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 financing..
    "The willingness of insiders to add $2 million to Extenway's equity
testifies to their confidence in the prospects of the Corporation and its
technology", said John McAllister, Extenway's Chief Executive Officer. "Our
interactive guest-media solutions for the hospitality industry enjoy a real
competitive advantage in our target markets. In light of current discussions,
we're confident that our product quality will translate into orders by major
clients. We hope to be able to make such announcements within a few months."

    The three major shareholders who are adding to Extenway's equity 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 and incurred in the course of the past year 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; David
          Brown 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
        - and Innovatech Québec and Chaudière-Appalaches ('Innovatech"), an
          early stage venture capital fund, which held 21,503,183 or 44.5% of
          Extenway common shares outstanding prior to the issue announced
          today; Innovatech is acquiring 8,333,333 common shares for a total
          cash consideration of $500,000, at a price of $0.06 per share.

    Following the placement, Extenway will have 81,643,001 common shares
issued and outstanding. Holdings will hold 17,618,027 common shares, being
21.6% of Extenway shares issued and outstanding; David Brown will hold
20,433,334 common shares, being 25.0% of Extenway shares issued and
outstanding; and Innovatech will hold 29,836,516 common shares, being 36.6% of
Extenway shares issued and outstanding.
    The Board approved the transaction with the interested parties abstaining
from any participation in the discussions or the decision process. Interested
parties were David Brown, John McAllister and Ms Francine Laurent, an
Innovatech executive and a director of the Corporation. A committee of
independent directors, comprised of Ms Carolyne Lassonde and Messrs Richard
Laferrière and Lorne Zakaib, analysed the transaction and recommended that the
Board approve it. The committee determined that the transaction is justified
by the Corporation's present financial position; that the transaction will
improve Extenway's financial position and support the execution of its
business plan; and that the terms of the transaction are reasonable in the
Corporation's present circumstances. Over the past 20 trading days, Extenway
common shares traded at a weighted average price of $0.04.
    The transaction is subject to usual conditions, including approval by the
TSX Venture Exchange.

    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

    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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