Cantronic Systems Inc.

Cantronic Systems Inc.

June 20, 2008 18:23 ET

Cantronic Prices Common Shares for $5.0 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2008) - Further to our news release dated June 11, 2008, Cantronic Systems Inc. ("Cantronic" or "Company") (TSX VENTURE:CTS) and its syndicate have agreed to price the best efforts private placement (the "Offering") at $0.35 per common share, and raise approximately $5 million. The syndicate is led by Leede Financial Markets Inc. and Blackmont Capital Inc., and also includes Canaccord Capital Corporation and Research Capital Corporation (collectively the "Agents"). The private placement will be of common shares which will be offered to accredited investors in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec. The securities issued will be subject to a four-month hold period. The Offering is subject to customary conditions and regulatory approvals, and is expected to close in mid-July 2008.

The Company has granted the Agents an Option to purchase up to an additional 15% of the common shares sold under the Offering at the issue price, exercisable until 24 hours prior to Closing.

Aside from the funds raised from investors on the President's List, Cantronic will pay a 7% cash commission to the Agents and also issue warrants (the "Broker Warrants") entitling them to purchase a number of common shares equal to 7% of the number of common shares sold under the Offering. The Broker Warrants will be issuable at an exercise price equal to the issue price for a period of 12 months from the date of Closing.

The net proceeds of the Offering will be used to finance a strategic acquisition in China (see news release June 2, 2008), and for 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 and

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.

This press release contains "forward-looking information" that is based on Company's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to growth in the markets in which the Company operates, plans to complete acquisitions, outlooks and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different than those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to the ability to raise sufficient capital, changes in economic conditions or financial markets, changes in price of the Company's products, litigation, legislative or other judicial, regulatory and political competitive developments and technological or operational difficulties.

This list is not exhaustive of the factors that may affect the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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

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