Preo Software Inc.
CNSX : PKM

Preo Software Inc.

October 08, 2009 17:25 ET

Preo Software Inc. Announces Private Placement of Debentures- $375,000

CALGARY, ALBERTA--(Marketwire - Oct. 8, 2009) -

NOT FOR DISSEMINATION IN THE U.S.

PREO SOFTWARE INC. (the "Corporation") (CNSX:PKM), a leader in Print Knowledge Management Software (PKMS), announces that it intends to raise up to $375,000 from a non-brokered private placement of secured, subordinated convertible debentures. The convertible debentures will not bear any interest, will be for a term expiring on April 1, 2010 and the outstanding principal amount under the convertible debentures may at the option of the holder be converted into common shares of the Corporation at a conversion price share equivalent to the issuance price of common shares under the next financing of the Corporation for gross aggregate proceeds of not less than $1,000,000. 

As consideration for providing the convertible debentures without any interest and the subordinated position of the investors, subscribers of the convertible debentures will receive non-transferrable warrants entitling the holders to purchase one (1) common share at a purchase price of $0.14 for a period of two (2) years from the closing date and determined on the basis of one (1) warrant for every $0.14 of principal under the convertible debentures. In the event that a subscriber exercises its rights of repayment at any time prior to the maturity date in accordance with the terms of the convertible debentures, the warrants shall be cancelled on the basis of one (1) warrant cancellation for every $0.14 of indebtedness repaid to the subscriber by the Corporation. 

The Corporation anticipates that certain directors, insiders or their related parties will subscribe for the convertible debentures. The net proceeds from the issuance of debentures will be used to fund the Corporation's marketing, sales and commercialization activities. 

Any common shares issued upon conversion of the convertible debentures or exercise of the warrants will be subject to a four (4) month hold period in accordance with applicable securities legislation. The proposed terms of the debentures and completion of the private placement is subject to final approval of the CNSX Exchange and applicable securities laws. 

About Preo Software Inc.

Preo Software Inc. is the market leader in providing Print Knowledge Management Systems (PKMS) to enterprises around the world. Printelligence™, the company's award winning SaaS (Software as a Service) offering, empowers users to optimize their print assets and reduce print volumes yielding significant cost savings and a smaller environmental footprint. Preo customers have achieved significant cost reductions through the deployment of Printelligence's patented PKMS Rules Engine, which allows managers to monitor, advise and/or control the print function in their organization. 

The Canadian National Stock Exchange (CNSX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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