BALLASALLA, Isle of Man, Nov. 8, 2006 (PRIMEZONE) -- On October 18, 2006, CallKey International, Inc. ("CallKey") (Pink Sheets:CKYI) closed a financing transaction for net proceeds of $3,825,800, received at the closing in the form of a convertible note, and a further $730,000 (also to be provided in the form of a note) committed to be provided upon the filing of a registration statement covering the shares underlying the notes and related warrants. The proceeds of the financing are being used by CallKey to refinance its $1.8 million of outstanding convertible debentures plus outstanding interest, finance other third party loans, fund the ongoing operations of its operating subsidiary and to make a strategic acquisition.
The convertible notes being issued as part of the financing bear interest at 10% and have warrant coverage of 3,000,000 shares, representing approximately 12.5% of CallKey's common stock, at a $0.25 exercise price. The notes are convertible into common stock at $0.25 per share. To secure the notes, CallKey, CallKey Group Ltd. and CallKey Technologies, Ltd. have granted a security interest in all of their assets.
CallKey is required to file a registration statement to register the shares into which the notes are convertible and the 3,000,000 shares issuable upon exercise of the warrants, and intends to file this with the Securities and Exchange Commission on or before December 31, 2006. CallKey has retained Weaver & Martin, LLC in Kansas City, Missouri as its auditor.
About CallKey
CallKey International, Inc. (Pink Sheets:CKYI), through its subsidiary, CallKey Group Ltd., is an early leader in the emerging Global MVNO ("Mobile Virtual Network Operator") telecom sector. CallKey's expanding portfolio of services is specifically targeted to providing greater flexibility and telecom cost savings to the international traveler. CallKey enables its international network of telecom resellers and distributors to offer their customers a branded, reliable and cost competitive mobile phone service while they travel abroad. CallKey's distributors can deliver substantial savings to their customers on international mobile roaming costs when making calls from over 80 countries worldwide. More information is available about CallKey at www.callkey.com.
Safe Harbor Statement
Statements in this news release about CallKey's future expectations, including: the advantages of our products and services, anticipated competitive advantages, the anticipated filing of our registration statement and all other statements in this release, other than historical facts, are forward-looking statements. It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking statements based on such factors as new technologies developed by other companies, market share garnered by competitors, ability to maintain vendor relationships, potential volume limitations of our system, the potential for increased regulation and failure to complete audits in a timely fashion. If we do not file our registration statement by December 31, 2006, we will be subject to penalties under our Registration Rights Agreement with the financing source.