Labrador Technologies Inc.
TSX VENTURE : LTX

Labrador Technologies Inc.

March 17, 2010 14:17 ET

Labrador Technologies Inc. Announces Debt Conversion, Private Placement Financing and Resignation of Officer

CALGARY, ALBERTA--(Marketwire - March 17, 2010) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Labrador Technologies Inc. ("LTI" or "Labrador"), (TSX VENTURE:LTX) is pleased to announce the proposed conversion of certain existing debt into common shares and a concurrent private placement.

Debt Conversion

Certain existing creditors of LTI have together agreed to convert their combined existing subordinated debt, including accrued interest, of approximately $247,500 into approximately 2,750,000 common shares of Labrador. The subordinated debt is being converted at $0.09 per common share (with no warrant), which is a 20% premium to the closing price of the Labrador common shares on March 16, 2010 of $0.075. Closing of the Debt Conversion is expected to occur on or before April 19, 2010.

Private Placement

Concurrent with the Debt Conversion, Labrador will complete a non-brokered private placement (the "Private Placement") for up to 5,000,000 units of Labrador ("Units"), at a price of $0.10 per Unit, for proceeds of up to $500,000. Each Unit will consist of one (1) common share ("Common Share") of LTI, and one half (1/2) common share purchase warrant ("Warrant"), with each Warrant exercisable at a price of $0.20 per Common Share, for a period of 24 months following the Closing Date. No agent has been retained in connection with the Private Placement; however, LTI may pay a finder's fee to qualified persons in accordance with applicable securities regulations. Closing of the Private Placement is expected to occur on or before April 19, 2010.

On November 6th, 2009, LTI signed a global strategic agreement with IHS Inc. (IHS) to distribute LTI's eTriever™ (www.ihs.com/etriever) web application bundled with IHS Canadian Oil and Gas Critical Information. Labrador requires the proceeds from the Private Placement to provide working capital to eliminate accrued liabilities and to underwrite continued eTriever development to support this agreement.

The Debt Conversion and the Private Placement are subject to the approval of the TSX Venture Exchange Inc. (the "TSXV") and the receipt of all other necessary regulatory approvals.

Resignation

Labrador announces that it has accepted the resignation of Ms. Kris Majury as President. The Board of Directors thanks Ms. Majury for her work on behalf of LTI and wishes her well in her future endeavors. The Board of directors has re-appointed Mr. Ronald Sterne as President of Labrador.

Labrador eTriever is a secure, web-based, generic data retriever, which thrives in complex database environments such as the Oil & Gas industry. eTriever™ goes beyond conventional oil and gas web access to provide wireless data retrieval for smartphones such as BlackBerry™ and iPhone™. Labrador (labradortechnologies.com) trades on the TSX Venture under the symbol "LTX."

Note Regarding Forward-Looking Statements

This news release contains forward-looking statements relating to the completion of the Debt Conversion and the Private Placement in order to take advantage of opportunities available in the current environment, Labrador's growth and business plans and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. These statements are based on certain factors and assumptions regarding the receipt of necessary regulatory approvals, expected growth, results of operations, performance, business prospects and opportunities. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. By their nature, forward-looking statements involve numerous risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation, risks associated with a failure to obtain the necessary approvals to complete the Debt Conversion and the Private Placement, the demand for the Company's services, competition, inability to retain personnel and customers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive. Although Labrador believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward looking statements. The forward-looking statements contained in this news release are made as the date of this new release and the company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Contact Information

  • Labrador Technologies Inc.
    Birgit Becker
    Office Manager
    (403) 261-7397