Tranzeo Wireless Technologies Inc.

Tranzeo Wireless Technologies Inc.

January 25, 2007 08:08 ET

Tranzeo Wireless Technologies to Raise $8,000,000 Through Bought Deal

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2007) -


Tranzeo Wireless Technologies Inc. ("Tranzeo" or the "Company") (TSX:TZT) today announced that it has entered into an agreement with Orion Securities Inc. and a syndicate of underwriters including Raymond James Ltd. and Paradigm Capital Inc. pursuant to which the underwriters have agreed to purchase from the Corporation, on a "bought deal" basis, an aggregate of 3,200,000 common shares at a price of $2.50 per share for gross proceeds to the Company of $8,000,000. In addition, Tranzeo has granted the underwriters an option to purchase an additional 480,000 common shares (15% of the offering) at the issue price of $2.50 per share, for over-allotment and market stabilization purposes, which option shall be exercisable for 30 days following the closing of the offering.

In connection with the offering, the Company will file a short form prospectus in each of the provinces of Canada other than Quebec. The offering is expected to close on or about February 14, 2007. The transaction is subject to certain conditions, including the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange. The net proceeds from the offering will be used to increase sales and marketing efforts in both Europe and the United States, fund new products, build a distribution centre in Europe and for general working capital.

The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This press release does not constitute an offer for sale of securities in the United States.

Forward-looking Statements: Except for historical information, this news release may contain forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws, which reflect the Corporation's current expectations and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changes in customer markets, changes in demand for the Corporation's services, inability of the Corporation to deliver services in a timely and cost-efficient manner, technological change, general economic conditions and other risks detailed from time-to-time in the Corporation's ongoing filings with the Canadian securities regulatory authorities which filings can be found at Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.

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