Zecotek Closes Non-Brokered Private Placement for $2.5 million
Vancouver, September 5, 2007 - Zecotek Medical Systems Inc. (TSX-V: ZMS; Frankfurt: W1I) today announced that the Company has closed its previously announced non-brokered private placement consisting of 1,563,000 Units at a price of $1.60 for gross proceeds of $2,500,800. The original $2,000,000 private placement announced on August 14, 2007, was oversubscribed and subsequently increased to $2,500,800 on closing.
Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $2.00 per common share for a period of 18 months after the date the private placement closes. Under the terms of the private placement, 1,563,000 common shares were issued at $1.60 per share. N et proceeds from the private placement will be used for working capital purposes and more specifically directed towards initiating production of Zecotek’s high-performance RFO vanadate crystal, finalizing manufacturing details of the solid-state photo detectors with the Malaysian Institute of Micro-Electronics Systems and completing the build-out of a 32″ 3D2D display unit expected in early November 2007. A portion of the funds will also be used to initiate production of the company’s recently announced breakthrough green fiber laser that operates in all known wavelengths of the green spectral range.
Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $2.00 per common share for a period of 18 months after the date the private placement closes. Under the terms of the private placement, 1,563,000 common shares were issued at $1.60 per share.
Pursuant to the financing, the Company will pay a finder’s fee equal to 5% of the gross proceeds of the sale of the Shares and issue non-transferable finder’s warrants to purchase common shares equal in number to 5% of the units sold under the private placement. Each finder’s warrant will entitle the holder to purchase one Share at $2.00 for a period of 18 months after the date the private placement closes. All shares and finder’s warrants will be subject to a four-month hold period expiring on January 4, 2008.
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Zecotek Medical Systems (TSX-V: ZMS; Frankfurt: W1I) is a bio-photonics technology company developing high-performance crystals, photo detectors, medical lasers, optical imaging and 3D display technologies for commercial applications in the medical diagnostics and high-tech industry. Founded in 2003, the company has three distinct operating divisions: medical imaging, medical lasers and 3D display and labs located in Canada, Singapore and Russia. Zecotek commercializes its novel, patented and patent-pending bio-photonic technologies directly and through strategic alliances and joint ventures with multinational OEMs, distributors and other industry leaders.
This press release may contain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what may have been stated.
For additional information on Zecotek Medical Systems and our technologies please see our website at Zecotek Photonics.
For additional information please contact:
Zecotek Medical Systems, Inc.
CFO; VP Corporate Development
T: (604) 827-5203
Caliber Capital Partners
T: (778) 327-6678
E: [email protected]
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