AirIQ Inc.

AirIQ Inc.

May 16, 2011 08:30 ET

AirIQ Announces Private Placement and Stock Option Grant

TORONTO, ONTARIO--(Marketwire - May 16, 2011) -


AirIQ Inc. ("AirIQ" or "the Company") (TSX VENTURE:IQ), a supplier of wireless location-based services, today announced a proposed non-brokered private placement of 2,772,886 common shares of the Company at a price of $0.15 per share, for total consideration of $415,933 (the "Private Placement").

The closing of the Private Placement is expected to occur on May 31, 2011, subject to approval and acceptance of the TSX Venture Exchange. The Company expects that insiders of the Company will subscribe for more than 25% of the Private Placement. All securities issued pursuant to the Private Placement will be subject to a four-month hold period from the date of closing. The proceeds from the offering will be used for general working capital.

The Company also announced that on April 28, 2011, the Board granted stock options to Donald Gibbs to purchase up to 500,000 common shares for an exercise price of $0.15 per share. Mr. Gibbs is President and Chief Executive Officer of AirIQ and a member of the Board of Directors of the Company. The term of the options is ten years from the date of grant and the options vest over a period of four years; 25% the first year and 6.25% each quarter thereafter; provided however in the event of a change of control of the Company, the vesting period automatically accelerates and the full amount of the grant becomes immediately exercisable. All other terms of the option grant are in accordance with the Company's Stock Option Plan and are subject to any required approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any of these securities in the United States. Securities may not be offered or sold in the United States absent registration under the United States Securities Act of 1933, as amended, and applicable state securities laws, or an available exemption from such registration requirements.

About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of location based services that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at

Forward-looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information