Wireless Location Based Solutions  .   GPS Vehicle Tracking  .   Fleet GPS Management  .   Telematics Vehicle Tracking  .   Automotive Telematics  .   GPS Satellite Tracking
 

Archive 2006

<< Back

WebTech Wireless Announces Closing of $10 million bought deal private placement


April 11 , 2006 - WebTech Wireless Inc. Announces Closing of $10 Million Bought Deal Private Placement

This news release is intended for distribution in Canada only and is not authorized or intended for distribution to United States newswire services or for publication or dissemination in the United States.

Burnaby, BC - April 11, 2006 - WebTech Wireless Inc. (TSX-V: WEW) (the "Corporation") is pleased to announce the closing of the previously-announced bought deal agreement for 4,137,932 special warrants ("Special Warrants") at a price of $1.45 per Special Warrant, plus an underwriters' option exercised in full to purchase an additional 2,758,621 Special Warrants, for total gross proceeds of $10,000,000 (the "Offering"). The syndicate of underwriters was led by Wellington West Capital Markets Inc. and GMP Securities LP. Each Special Warrant is exercisable, at no additional cost into one common share of the Corporation.

In connection with the Offering, the Corporation will file a short form prospectus in each of the applicable provinces of Canada to qualify for distribution the common shares underlying the Special Warrants. Subject to the issuance of a final receipt for the foregoing prospectus, the Special Warrants (and underlying shares issuable upon exercise thereof) are subject to a four-month hold period in accordance with applicable securities laws and regulations, which will expire on August 11, 2006.

In addition to receiving a cash commission for their services as underwriters under the Offering, the underwriters were issued a number of Special Broker's Warrants (each of which is exercisable into one compensation option (each, a "Compensation Option")) that is equal to 3.0% of the number of Special Warrants sold under the Offering. The transaction is subject to the receipt of final approval from the TSX Venture Exchange. Each Compensation Option is exercisable into one common share of the Corporation at an exercise price of $1.45 per common share for one year. The Compensation Options will be qualified under the prospectus referred to above. Subject to the issuance of a final receipt for the prospectus referred to above, the Special Broker's Warrants (and the Compensation Options and underlying shares issuable upon exercise such Compensation Options) are subject to a four-month hold period in accordance with applicable securities laws and regulations, which will expire on August 11, 2006.

"We are very pleased with this successful bought deal financing," commented Anwar Sukkarié, President and CEO, WebTech Wireless. "The proceeds from this financing will be applied towards ongoing research and development efforts, increasing sales and support, and working capital to fund our continuing growth," continued Mr. Sukkarié.

Forward Looking Statements

This press release contains forward-looking statements involving risks and uncertainties pertaining to, but not limited to product plans, timing, content, and pricing of products, market and industry expectations, the wireless communications industry, the mobile fleet industry, and general economic and political conditions. Given the risks and uncertainties inherent in the markets and industries referred to in this press release, WebTech cannot guarantee that any forward looking statements will not be realized.

Trademarks are the property of their owners.

To keep "plugged" in to our exciting growth story, please send an email requesting addition to our press release list to info@webtechwireless.com .

<< Back


 
 
 
 

Copyright © 2008 WebTech Wireless Inc. All rights reserved  |  Privacy Policy