CHARLOTTE, N.C., March 16, 2007 (PRIME NEWSWIRE) -- Organetix Inc. (OTCBB:OGTX) has today announced that the Company has completed a $300,000 private placement with accredited individual investors. The private placement was oversubscribed so the Company did accept more than $300,000 in conjunction with this financing. The terms and final dollar amount of this private placement shall be disclosed in a Form 8K, to be filed shortly.
The vast majority of the proceeds shall be utilized by ADAO Telecom ("ADAO") to build its proprietary cellular phone prototype, which will target the fast growing low end user market. Recalling on January 25, 2007, Organetix signed a definitive agreement to acquire privately held ADAO Telecom, Inc. The closing of the transaction, expected sometime during the second calendar quarter, is mainly conditioned upon the successful completion of the phone prototype by ADAO.
Commenting on the private placement, ADAO CEO Ed Holmes said, "The Company now has the requisite capital to build the prototype that should enable ADAO to reach commercialization. We believe that substantial revenues and profits can be generated from our cellular phone model through the targeting of the low end user market. The completion of the prototype, which we anticipate within 90 days, will mark a major step towards full commercialization of the product."
About ADAO Telecom, Inc.
ADAO Telecom, Inc. is a telephony engineering and design firm specializing in the development of cellular technologies that target the low end user market. For more information please visit the corporate website at http://www.adaotele.com
Disclaimer
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, statements regarding benefits of the proposed acquisition and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects" or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.