Labrador Technologies Inc.

Labrador Technologies Inc.

June 09, 2009 17:34 ET

Labrador Technologies Inc. Announces Private Placement Financing

CALGARY, ALBERTA--(Marketwire - June 9, 2009) -


Labrador Technologies Inc. ("LTI" or "Labrador") (TSX VENTURE:LTX) is pleased to announce a non-brokered private placement (the "Private Placement") for up to 40,000,000 units of Labrador ("Units") at a price of $0.05 per Unit, for gross proceeds of up to $2,000,000. Each Unit will consist of one (1) common share ("Common Share") of LTI and one half (1/2) common share purchase warrant ("Warrant") of LTI, with each Warrant exercisable at a price of $0.10 per Common Share for a period of two (2) years following the closing date. Pursuant to applicable securities legislation, the Common Shares and Warrants issued pursuant to the Private Placement are subject to a hold period of four months and one day from the closing date.

In connection with the Private Placement, Labrador has agreed to pay fees to qualified persons pursuant to available securities laws exemptions of up to 7.0% of the gross proceeds of the Private Placement through the issuance of up to 1,400,000 Common Shares at a deemed price of $0.10 per Common Share.

Labrador requires the proceeds from this Private Placement to eliminate the current working capital deficiency, pay outstanding receivables and the remainder of the proceeds will be used for working capital.

The Private Placement is subject to the approval of the TSX Venture Exchange Inc. (the "TSXV") and the receipt of all other necessary regulatory approvals. The completion of the Private Placement is expected to result in Iceberg Investments Limited Partnership or its designated nominee (the "L.P."), as a subscriber, holding more than 20% of the issued and outstanding shares of Labrador resulting in the L.P. becoming a "control person" (as that term is defined in the policies of the TSXV) of Labrador. As such, the policies of the TSXV requires that the Private Placement must be approved by the disinterested shareholders of Labrador. Labrador intends to obtain written consent of the disinterested shareholders of Labrador holding 50% plus one of the issued and outstanding Common Shares in lieu of calling and holding a shareholder's meeting.

The completion of the Private Placement is also subject to additional conditions precedent, including satisfactory completion by the L.P. of a due diligence review of Labrador, entering into of a formal share purchase agreement between L.P. and Labrador and three of the five current board members of Labrador resigning and being replaced by three nominees of L.P.

Labrador eTriever ( is a secure, web-based very cost effective, generic data retriever, which thrives in complex database environments, such as the oil and gas industry. As a web-based offering, eTriever™ requires no installation, no CD updates, and no maintenance - while providing "minimal-click" search , reporting, and exporting capabilities, as well as employing both Microsoft®'s Virtual Earth and Google® Map to view satellite imagery mapping. Further, eTriever™ goes well beyond conventional oil and gas web access to provide wireless data retrieval for proven handheld devices, such as Blackberries™, Plam® Treos™, Microsoft Windows Mobile™ Smart Phones, and when available Apple's iPhone.

Labrador ( trades on the TSX Venture Exchange under the symbol "LTX".


Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates", and similar expressions, are forward-looking statements that represents management of Labrador's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Labrador. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Labrador's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Labrador's filings with the Canadian securities authorities. Accordingly, holders of Labrador's shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Labrador disclaims any responsibility to update these forward-looking statements except as required by applicable securities legislation.

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.

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