Zecotek Announces Non-Brokered Private Placement
Singapore, August 19, 2009 - Zecotek Photonics Inc. (TSX-V: ZMS; Frankfurt: W1I.F), a developer of leading-edge photonics technologies for medical, industrial and scientific markets, today announced that the Company has arranged for a non-brokered private placement of 1,940,000 units of the company at a price of $0.63 per unit for gross proceeds of up to $1,222,200. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of $1.00 per common share at any time on or before the 24-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 $1.50 for a period of 10 consecutive trading days.
“The joint venture and strategic partnerships enjoyed by Zecotek will benefit greatly by this financing,” said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek. “The financing offers the opportunity to complete the transfer of manufacturing and commercialization of our visible tunable lasers to Fujikura Ltd of Japan. It will also advance Zecotek’s commercialization protocol with our many U.S. and European based partners and manufacturers.”
Net proceeds from the funds raised will be used for general working capital purposes.
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 50,000 non-transferable finder’s warrants to purchase common shares. Each finder’s warrant will entitle the holder to purchase one Share at $1.00 for a period of 24 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.
Zecotek Photonics Inc. (TSX-V: ZMS; Frankfurt: W1I) is a photonics technology company developing leading-edge products: crystals, photo detectors, lasers, imaging and 3D display technologies, for medical, biotech, industrial, nanotech and atomic/molecular science applications. Founded in 2003, the company has three distinct operating divisions: Laser Systems, Imaging Systems and 3D Display Systems and labs located in Canada, the United States, Singapore, Malaysia 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 Further Information Please Contact:
Zecotek Phototonics Inc.
T: (604) 827-5203
CHF Investor Relations
Christopher Haldane, Account Manager
T: (416) 868-1079 x237
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