VANCOUVER, British Columbia, Oct. 27, 2006 (PRIMEZONE) -- Braintech, Inc. (OTCBB:BRHI), a leading provider of Vision Guided Robotic ("VGR") software, announced today that it has redeemed all of its outstanding US$2.45 million Secured Convertible Debentures. The Company utilized a financing from the Royal Bank of Canada guaranteed by a group of mainly existing Virginia-based shareholders. For detailed information on the transaction please read the 8-K Report filed with the SEC and available via the internet through EDGAR.
Owen Jones, CEO of Braintech commented, "We were very fortunate in 2003 to receive funding through a Secured Convertible Debenture. The Debenture funding allowed us to grow and move the business forward as we realized our goal of developing our relationship and strategically partnering with global industrial giant ABB. The Company now moves to another level as we have paid off the Debenture Holders."
"The Virginia Investment Group realized the importance of retiring the Debentures," Jones continued. "Its involvement and the resulting secured investment vehicle are highly advantageous for Braintech. As a result of this transaction we have effectively reduced the total number of outstanding common shares by approximately 4,800,000 and have increased the potential amount of investment via exercise of warrants by approximately $2,900,000.
"Equally as important, these business investors are strategically networked and will support our efforts to develop our U.S. Federal Government robotics business."
Rick Weidinger, Managing Member of the Virginia Investment Group, said, "This financing definitely takes Braintech to the next level. We support the Company's business model and are pleased to partner with the Royal Bank of Canada on this financing. The Company is now well positioned as it has executed a strategic agreement and revenue guarantee with ABB, has improved its capitalization with this transaction and can now focus intensely on the growth of its existing high margin business as well as the implementation of new business in the other emerging robotics sectors." Rick further stated, "The robotics industry is entering a renewed growth phase not only for the industrial sector but also for the consumer and government sectors. Braintech is clearly a leader of vision-guidance technology and is well positioned to take advantage of opportunities of a growing robotics industry."
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Statements in this document that are not purely historical are forward-looking statements and reflect the current views of management with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technical difficulties in developing the products; competition from other suppliers of similar products; pricing that may not be acceptable to potential markets; and many other known and unknown factors. Readers should also refer to the risk disclosures outlined in the Company's 10-KSB and 10-QSB Forms filed from time to time with the SEC.