Zecotek Announces Non-Brokered Private Placement
Vancouver, December 29, 2008 - Zecotek Photonics Inc. (TSX-V: ZMS; Frankfurt: W1I.F) today announced that the Company has arranged for a non-brokered private placement with existing shareholders of 1,000,000 units of the Company at a price of $0.60 per unit for gross proceeds of $600,000.
Each unit consists of one common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $0.70 per common share at any time on or before the 18-months anniversary of the closing of the offering. The Warrant’s exercise period will automatically accelerate if the common shares of the Company trade above $1.00 for a period of 10 consecutive trading days.
Net proceeds from the funds raised will be used for general working capital purposes including finalizing the commercial production of Zecotek’s MAPD solid-state photo detectors, fiber and solid-state lasers, and high performance RFO vanadate laser crystals. The Company continues to work closely with joint venture partners including Fujikura Ltd., the Malaysian Institute of Microelectronic Systems, and U.S. and European based laser manufacturers. In light of current economic conditions, the Company has moved to reduce operating costs through the reduction of certain personnel and salaries.
Pursuant to the financing, the Company will pay a finder’s fee equal to 7% 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 6% of the units sold under the private placement. Each finder’s warrant will entitle the holder to purchase one Share at $0.70 for a period of 18 months after the date the private placement closes.
The common shares and warrants issued pursuant to the offering will be subject to a four-month hold period. The private placement is subject to acceptance for filing with the TSX Venture Exchange.
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Zecotek Photonics Inc. (TSX-V: ZMS; Frankfurt: W1I), is a photonics technology company developing high-performance crystals, photo detectors, lasers, optical imaging and 3D display technologies for commercial applications in the medical diagnostics and high-tech industries. Founded in 2003, the company operates three distinct divisions: imaging, lasers and 3D display, with labs located in Canada, USA, Singapore and Russia. Zecotek commercializes its novel, patented and patent-pending photonic technologies directly and through strategic alliances and joint ventures with multinational OEMs, distributors and other industry leaders. For more information, please visit www.zecotek.com.
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 product and technical information please contact:
Zecotek Photonics Inc.
SUSANA MENDEZ ALCALA
T: (604) 827-5232
For investor information please contact:
Caliber Capital Partners
T: (778) 327-6678
E: [email protected]
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release. If you would like to receive news from Zecotek in the future please visit the corporate website at www.zecotek.com.