QUEBEC, June 8, 2004 (PRIMEZONE) -- EmergenSys Corporation ("EmergenSys" or the "Company") (OTCBB:EMGS), a Public Safety System provider, announced it has closed a private placement offering in the total amount of CDN$5,540,000. Desjardins Securities Inc. was the agent for the offering. The placement involved the sale of 13,850,000 Special Warrants at a price of CDN$.40 per Special Warrant or an aggregate of CDN$5,540,000. Each Special Warrant is exercisable to acquire, for no additional consideration, one common share and one common stock purchase warrant of the Company (the "Purchase Warrants"). Each Purchase Warrant is exercisable for the purchase of one additional common share of the Company. Each Purchase Warrant entitles the holder thereof to purchase one common share at a price of CDN$.50 per share until April 30, 2005 and at a price of CDN$.60 per share from May 1, 2005 through April 30, 2006.
The proceeds of the private placement were delivered in escrow pending realization of certain conditions. On May 21, 2004, a sum of CDN$2,250,000 was released to the Company. The balance of the escrowed proceeds will be delivered to the Company on the earlier of (i) the date on which (a) the Company closes its intended acquisition of 3720161 Canada Corporation (d/b/a Mobilair Integration); and (b) certain required filings are made by the Company with the Quebec securities authority; or (ii) August 9, 2004.
A commission equal to 10% of the total offering proceeds has been paid by the Company to Desjardins Securities, plus that number of broker warrants equal to 10% of the number of Special Warrants issued pursuant to the offering. Each broker warrant entitles the holder to purchase one unit at a price of CDN$.40 per unit for a period of two years from the Special Warrant closing date. Each unit consists of one common share and one Purchase Warrant, each of which is identical to the Purchase Warrants issuable upon execution of the Special Warrants.
EmergenSys intends to use the net proceeds from the offering to execute its expansion plans in Canada (Quebec), the United States and around the world.
About EmergenSys
EmergenSys is a public safety system provider that has the exclusive marketing rights to a suite of public safety software solutions for local government 911 call centers and coastal authorities. More than 10 years of development and refinement have gone into the product via the collaborative efforts of Mobilair Integration of Quebec City and many Quebec fire, police and ambulance services. EmergenSys is now preparing to launch ambitious marketing plans in the United States through a network of Value Added Resellers (VARs) and the rest of the world through strategic alliances and partnerships.
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.