Preo Software Inc.
CNSX : PKM

Preo Software Inc.

October 15, 2009 09:49 ET

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

CALGARY, ALBERTA--(Marketwire – Oct. 15, 2009) -

(NOT FOR DISSEMINATION IN THE U.S.)

PREO SOFTWARE INC. (the "Corporation") (CNSX:PKM). The Corporation is pleased to announce that the previously announced financing has been fully subscribed.

The Corporation raised $375,000 from a non-brokered private placement of secured, subordinated convertible debentures. The convertible debentures will not bear any interest, have a term expiring on April 1, 2010 and are otherwise payable thirty (30) days after demand by any of the lenders. The outstanding principal amount under the convertible debentures may at the option of the lenders 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.

The Corporation has also issued an aggregate of 2,678,571 share purchase warrants to subscribers of the convertible debentures. Each warrant entitles a holder to purchase one (1) common share at a purchase price of $0.14 until October 14, 2011. 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 convertible debentures and underlying securities will be subject to a four (4) month hold period from the date of issuance of the convertible debentures in accordance with applicable securities legislation.

The net proceeds from the issuance of debentures will be used to fund the Corporation's marketing, sales and commercialization activities, including identifying sales prospects and channel distributors, delivering presentations and negotiating proposals for testing and trials of its proprietary software to potential licencees that includes Fortune 5000 companies in the technology, manufacturing, services and health- care sectors.

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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