Automated Benefits Corp.
TSX VENTURE : AUT

Automated Benefits Corp.

April 12, 2006 10:42 ET

Automated Benefits Corp. Announces Proposed Private Placement

WATERLOO, ONTARIO--(CCNMatthews - April 12, 2006) -

(Not for dissemination in the United States of America)

AUTOMATED BENEFITS CORP. (TSX VENTURE:AUT) (the Corporation ) announces that it has entered into an engagement letter with Canaccord Capital Corporation and Northern Securities Inc. (collectively, the Agents ) to act as agents in connection with a proposed best efforts private placement (the Private Placement) of 16,666,667 units of the Corporation (the Units ) at a price of $0.30 per Unit for gross proceeds of $5,000,000. Each Unit will consist of one common share of the Corporation (the Common Shares ) and one-half of one warrant (the Warrants ), with each whole Warrant entitling the holder thereof to purchase one Common Share at a price of $0.35 per share for a period of twenty-four months from the date of closing, provided that, in the event that at any time following eighteen months from the closing date the Common Shares trade for 10 consecutive trading days at a closing price of $0.75 or greater, the holder is required to exercise the Warrants within 30 days, failing which the Warrants will expire.

The Agents have also been granted an option to increase the size of the Private Placement before closing by up to 10,000,000 additional Units for additional gross proceeds of $3,000,000 for an aggregate of $8,000,000.

Closing of the Private Placement is expected to occur on or about April 27, 2006.

The Agents will be paid a cash commission, reimbursed for their expenses and will be granted agents options to purchase an amount equal to 10% of the number of Units sold under the Private Placement at a price of $0.30 per Unit for a period of twenty-four months from closing as compensation for acting as agents for the Private Placement.

The Corporation intends to use the net proceeds of the Private Placement for sales and marketing activities, further research and development and for general working capital.


The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

Contact Information

  • Automated Benefits Corp.
    James R. Swayze
    President
    (416) 359-9339