Zecotek closes $2.5-million private placement
2007-09-05 20:11 ET - News Release
Mr. Michael Minder reports
ZECOTEK CLOSES NON-BROKERED PRIVATE PLACEMENT FOR $2.5 MILLION
Zecotek Medical Systems Inc. has closed its previously disclosed non-brokered private placement consisting of 1,563,000 units at a price of $1.60 for gross proceeds of $2,500,800. The original $2-million private placement reported in Stockwatch on Aug. 14, 2007, was oversubscribed and subsequently increased to $2,500,800 on closing.
Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $2.00 per common share for a period of 18 months after the date the private placement closes. Under the terms of the private placement, 1,563,000 common shares were issued at $1.60 per share.
Net proceeds from the private placement will be used for working capital purposes and more specifically directed toward initiating production of Zecotek's high-performance RFO vanadate crystal, finalizing manufacturing details of the solid state photo detectors with the Malaysian Institute of Micro-Electronics Systems and completing the build out of a 32-inch 3D2D display unit expected in early November, 2007. A portion of the money will also be used to initiate production of the company's recently announced breakthrough green fibre laser that operates in all known wavelengths of the green spectral range.
Pursuant to the financing, the company will pay a finder's fee equal to 5 per cent of the gross proceeds of the sale of the shares and issue non-transferable finder's warrants to purchase common shares equal in number to 5 per cent of the units sold under the private placement. Each finder's warrant will entitle the holder to purchase one share at $2.00 for a period of 18 months after the date the private placement closes. All shares and finder's warrants will be subject to a four-month hold period expiring on Jan. 4, 2008.
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