RICHMOND, British Columbia, April 9, 2009 (GLOBE NEWSWIRE) -- CON-SPACE Communications Ltd. (the "Company" or "CON-SPACE") (TSX-V:CCB), (http://www.con-space.com), today announced that, further to its news release of April 3, 2009, it has closed its private placement of 22,000,000 common shares at $0.05 each, for gross proceeds of $1,100,000 (the "Offering"), to Turret Oy Ab ("Turret"), its largest shareholder and secured lender. The common shares issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the date of completion of the Offering in accordance with applicable securities legislation.
The proceeds of the Offering will be used to settle and payout the security held by the vendors of Search Systems Inc., to pay the overdue quarterly interest payment that was due on March 31, 2009 pursuant to the secured loan agreement with Turret and to repay Turret for two $50,000 bridge loans, with the balance for general working capital and costs associated with the financing and restructuring.
Gordon Cook, the Company's President and CEO, said, "We are fortunate that Turret has responded favourably to our request for additional financing. This capital injection is expected to put the Company on firmer financial ground and assist us in our endeavours to continue our operations uninterrupted."
About CON-SPACE
CON-SPACE is recognized as a leading designer and manufacturer of specialized voice communication equipment used by Police, Fire, Rescue, Government Agencies, Militaries, Municipalities and general industry. CON-SPACE has distribution throughout North America, Great Britain, Australia, parts of Asia, South America, and Europe. CON-SPACE also supplies many other manufacturers with private labeled products.
DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward looking statements include the Company's proposal to complete a restructuring plan and complete the financing with Turret. There can be no assurance that all necessary conditions will be met such that the private placement will be completed, or that such completion will be sufficient for the Company's needs over any foreseeable time horizon. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.