SOURCE: Braintech Inc.

August 14, 2007 15:30 ET

Braintech Finalizes Share Obligation as Part of Debenture Repayment Plan

Ongoing Share Dilution Risk Removed From Financial Statements

VANCOUVER, BC--(Marketwire - August 14, 2007) - Braintech Inc. (OTCBB: BRHI), a leading provider of Vision Guided Robotic ("VGR") software technologies, announced today that the Company has finalized a share distribution obligation as a part of a convertible debenture repayment plan. The final share distribution of 1,625,000 restricted common shares was issued to a group of investors who provided security allowing for repayment of the convertible debentures.

The convertible debentures, issued in 2002, were redeemed utilizing a $2,450,000 term loan from the Royal Bank of Canada. The Royal Bank required that investors provide standby letters of credit (the "LC Providers") securing the full amount of the loan. Details of the compensation arrangements contained in the Loan Guarantee Agreement are detailed in the Company's financial statements and quarterly report for the six month period ended June 30, 2007. The Agreement provided for the issuance of up to an additional 4,900,000 restricted common shares if the Company did note file a Registration Statement and if the Registration Statement did not become effective within certain time constraints. On April 20, 2007, the Company filed an SB2 Registration Statement and on May 11, 2007, the Registration Statement was declared effective. On August 8, 2007, the Company issued 1,625,000 restricted common shares which fully completed the compensation terms of the Agreement and by doing so the Company reduced the potential additional common stock dilution by 3,275,000 shares.

Owen Jones, Braintech CEO states, "This share distribution finalizes the repayment plan to retire the 2002 convertible debenture loan. With this obligation behind us, we're in a position to sharpen our focus on growing business. Shareholders can expect an increase in business from 3 majors areas; non-automotive industrial, consumer and government. Through planned growth of the organization, we will have the capabilities to manage the demands of growth."

About Braintech:


Statements in this document that are not purely historical are forward-looking statements and reflect the current views of management with respect to future events and are subject to certain risks, uncertainties and assumptions. Forward-looking statements in this news release include statements regarding the focus on growing business, the expectation of an increase in business from 3 major areas; non-automotive industrial, consumer and government and the planned growth of the organization. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technical difficulties in developing the products; competition from other suppliers of similar products; pricing that may not be acceptable to potential markets; and many other known and unknown factors. Readers should also refer to the risk disclosures outlined in the Company's 10-KSB and 10-QSB Forms filed from time to time with the SEC.

Contact Information

  • Contact Information:

    Owen Jones
    Braintech Inc.
    #102 - 930 W 1st Street
    Vancouver, BC
    V7P 3N4
    (604) 988-6440 x 202
    Email Contact