Blackline GPS Corp.
TSX VENTURE : BLN

Blackline GPS Corp.

February 07, 2011 12:59 ET

Blackline GPS Corp. Closes Over-Subscribed $8.0 Million Private Placement

CALGARY, ALBERTA--(Marketwire - Feb. 7, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Blackline GPS Corp. (TSX VENTURE:BLN) ("Blackline" or the "Corporation"). As previously announced on December 14, 2010 and January 25, 2011, Blackline is pleased to announce that it has completed its brokered private placement offering of 53,333,333 units of the Corporation (the "Units") at a price of $0.15 per Unit for aggregate gross proceeds of approximately $8,000,000 (the "Offering"). Each Unit is comprised of one common share of the Corporation (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one Common Share for a period of twelve months following the closing of the Offering at an exercise price of $0.25 per Common Share. All securities issued in connection with the Offering are subject to a four month plus one day hold period.

Lightyear Capital Inc. (the "Agent") acted as the agent for the Offering. The Agent received a total cash commission of 7.0% of the gross proceeds raised pursuant to the Offering and agent's options, being 10.0% of the Units issued pursuant to the Offering.

Proceeds of the Offering will be utilized for expanding the Corporation's industrial safety and commercial business.

Completion of the Offering is subject to final approval of the TSX Venture Exchange.

The Corporation is also pleased to announce that it has granted stock options to acquire 350,000 Common Shares of the Corporation to Dr. John Finbow in connection with his appointment to the board of directors. For further information on the appointment please refer to the Corporation's press release issued January 10, 2011, available on SEDAR. The options have an exercise price of $0.20 per Common Share and expire five years from the date of grant. All of the options vest immediately.

Blackline has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 are available for the grant of options (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More Than 25% of Market Capitalization).

A copy of this news release will be available at www.sedar.com

Certain statements included in this presentation may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be taken as guarantees of future performance or results. Forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Blackline's control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates and stock market volatility. The forward-looking statements contained in this news release are made as at the date of this news release and Blackline does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

About Blackline GPS Corp.: Headquartered in Calgary, Alberta, Blackline is an industrial safety and commercial product manufacturer. The company solutions address work environments focused on employee safety, while also offering connected hardware to improve security and communicate logistical information of company assets. The industrial business also aims to supply growing legislated and regulated markets, which exist largely around the globe, service plans which provide functionality based on product hardware. The company also maintains a suite of products and services which service the consumer and retail environment. Blackline's technology, dedication and vision combine to create and ever-growing suite of tools designed to Protect. Share. Connect™.

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.

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