QuestAir Technologies Inc.

QuestAir Technologies Inc.

May 23, 2006 19:46 ET

QuestAir Prices Public Equity Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 23, 2006) -


QuestAir Technologies Inc. (TSX:QAR)(AIM:QAR) (the "Company") announces that in connection with its previously announced equity offering, it has entered into an agency agreement with Clarus Securities Inc. and Canaccord Capital Corporation (the "Agents") to offer 14,815,000 common shares from treasury at a price of CDN$1.35 (Pounds Sterling 0.64) per common share. The gross proceeds from the offering will be CDN $20,000,250 (Pounds Sterling 9,481,600). The Company has granted the Agents an over-allotment option to purchase up to an additional 2,222,250 shares exercisable for 30 days from closing.

The Company filed its final prospectus today in connection with this offering, which is expected to close on or about 31 May, 2006. The shares are expected to be admitted to AIM on 31 May, 2006.

Proceeds from this offering will be used to finance the ongoing development and commercialization of the QuestAir's proprietary gas purification technology, and for general working capital.

This release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The common shares have not been registered under the United States Securities Act of 1933, as amended, and they may not be offered or sold in the United States absent registration or an applicable exemption from registration.

About QuestAir Technologies Inc.

QuestAir Technologies, Inc. is a developer and supplier of proprietary gas purification systems for several large international markets, including existing markets such as oil refining, biogas production and natural gas processing, and emerging markets such as fuel cell power plants and fuel cell vehicle refuelling stations. The Company has joint development agreements with Exxon Mobil Research and Engineering Company and Shell Hydrogen, and a collaboration with FuelCell Energy. QuestAir is based in Burnaby, British Columbia and its shares trade on the AIM Market of the London Stock Exchange Plc. and on the Toronto Stock Exchange under the symbol "QAR".

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.

Contact Information

  • QuestAir Technologies Inc.
    Andrew Hall
    Director, Corporate Development and External Communications
    (604) 453-6967
    James Hoggan & Associates
    Terry Foster
    Canadian Media Contact
    (604) 739-7500
    Buchanan Communications
    Charles Ryland
    UK Media Contact
    +44 207 466 5000
    Buchanan Communications
    Ben Willey
    UK Media Contact
    +44 207 466 5000
    Clarus Securities Inc.
    Rod Campbell
    (604) 605-0982
    Canaccord Adams Limited
    Mark Ashurst
    +44 207 518 2777