WebTech Wireless Inc.
TSX VENTURE : WEW

WebTech Wireless Inc.

January 16, 2007 10:42 ET

WebTech Wireless Inc. Announces Closing of $40.25 Million Bought Deal Financing

BURNABY, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

WebTech Wireless Inc. (TSX VENTURE:WEW) (the "Corporation") is pleased to announce that it has completed its previously announced bought deal financing of 7,000,000 common shares of the Corporation at a price of $5.00 per common share, plus an over-allotment option exercised in full to purchase an additional 1,050,000 common shares, for total gross proceeds of $40,250,000. The syndicate of underwriters was led by Wellington West Capital Markets Inc. and GMP Securities LP and included Pacific International Securities Inc. and Paradigm Capital Inc. As compensation to the underwriters, the Corporation paid a cash commission equal to 6% of the gross proceeds realized by the Corporation in respect of the sale of the common shares. The proceeds of the offering will be used for supporting consumer automotive initiatives in Brazil, for additional research and development and sales and marketing activities, and for working capital and general corporate expenses.

The common shares were offered by way of a short form prospectus in the provinces of Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About WebTech Wireless Inc.

WebTech Wireless Inc. (TSX VENTURE:WEW) is a global Telematics, location-based services provider that develops, manufactures, and delivers turnkey wireless solutions designed to improve productivity and profitability. WebTech products include wireless hardware and software services running on cellular and satellite networks, and include Automatic Vehicle Location, Mapping, Reporting, Vehicle Maintenance, Driver Status, In-vehicle Telemetry, Messaging, In-vehicle Navigation, and wireless application and Internet connectivity. WebTech is currently providing devices and services worldwide in eight languages to over forty-one countries covering five continents. WebTech's scalable solutions are used by a broad range of small, medium, Fortune 500 companies and governments. For more information, please visit www.webtechwireless.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Investor Relations Contact
    Pacific Orca Capital
    R. Joe Dhami
    1-877-811-4518 Ext. 236
    Email: jdhami@shawcable.com