Cantronic Systems Inc.
TSX VENTURE : CTS

Cantronic Systems Inc.

July 08, 2008 15:12 ET

Cantronic Announces Closing of First Tranche of $4.75 Million Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2008) - Cantronic Systems Inc. ("Cantronic") (TSX VENTURE:CTS) is pleased to announce the completion of the first tranche in its previously announced private placement of up to 16,428,572 common shares of Cantronic (the "Offering") at a price of $0.35 per share for gross proceeds of CAD $5,750,000. The first tranche consisted of the sale of 13,571,428 shares of Cantronic for gross proceeds of $4,750,000.

The shares were sold, through its syndicate led by both Leede Financial Markets Inc., and Blackmont Capital Inc., and including Canaccord Capital Corporation and Research Capital Corporation (collectively the "Agents"). Cantronic paid the Agents a cash commission in respect to the first tranche equal to $332,500 and issued broker compensation warrants (the "Broker Warrants") entitling the Agents to purchase 949,999 shares of Cantronic. The Broker Warrants shall be exercisable at a price per common share of $0.40 for a period of 12 months from the closing of the Offering. The securities issued pursuant to the Offering will be subject to a 4-month restricted period expiring on November 9, 2008.

The net proceeds of the first tranche of the Offering are equal to CAD$4,347,500 and will be used for the investigation of potential acquisitions, commercialization and general working capital purposes.

About Cantronic

Cantronic manufactures, distributes, and provides training and services in the fields of infrared vision and video security surveillance technologies, specializing in passive and active infrared cameras, infrared illuminators, low light infrared sensitive CCD cameras and long-range night vision surveillance systems for demanding homeland security and surveillance application.

Cantronic, through its US subsidiary QWIP Technologies, Inc. ("QWIPTECH"), holds a worldwide, exclusive license from the California Institute of Technology ("Caltech") to produce and sell infrared detectors and sensors based on Caltech's Quantum Well Infrared Photodetector technology.

Cantronic is a Tier 1 issuer on the TSX-V exchange, trading under the symbol CTS. For further information about Cantronic and QWIPTECH, please visit our websites at www.cantronics.com and www.qwip.com.

Safe Harbor Statement

The Securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the 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.

Forward-looking statements contained in this press release involves known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Cantronic to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

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

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