SOURCE: Catuity Inc.

November 14, 2006 16:52 ET

Catuity to Close $2.25M Capital Raise

New Contracts Give Company 1,800 Potential Deployments

DETROIT, MI -- (MARKET WIRE) -- November 14, 2006 -- Catuity Inc. (NASDAQ: CTTY) (ASX: CAT) (ASX: CATN), a loyalty and gift card processor, today filed its Form10-QSB with the SEC and announced that it has executed term sheets to raise $2.25 million from U.S. institutional investors.

The company also reported that during the third quarter it signed new chain retailer accounts representing up to 1,800 potential deployable locations. The clients, who have not been individually announced, are in the process of scheduled deployments that will carry into 2007. Additionally, the company successfully launched its largest reseller to date in October.

"This has been a year of important firsts for us as we have focused on gaining market acceptance for our proprietary processing platform and gaining initial reference accounts,'' said John Racine, president & CEO of Catuity Inc. "The flexibility and ease of use of our system caters to the ambitions of the high-growth franchises that we have targeted in our sales process."

Catuity is also in the process of closing on a capital raise for $2.25 million and expects to complete the transaction and file a proxy statement with the SEC to seek shareholder approval as early as Friday, Nov. 17. The Company's management will provide a market update once the deal is finalized.

"The capital raising process was prolonged by changing interpretation of regulatory and accounting issues that have specifically affected smaller public companies like Catuity,'' said Mr. Racine. "These issues are not specific to Catuity, but we are pleased to be closing a capital raise as we look to 2007."

Catuity's third quarter financial statements can be viewed on the Company's website at www.catuity.com.

About Catuity Inc.

Catuity Inc. makes the point of sale more profitable for its customers by delivering products and services which reduce costs and generate new revenues. Our retailer clients have more than four million cardholders participating in Catuity-powered loyalty and gift card programs. For more information on Catuity, please visit our website at www.catuity.com.

This press release includes statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding market share growth, market acceptance of services, sales, revenues and profits. These forward-looking statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, factors that could cause actual results to differ materially from those in forward-looking statements include the ability to win new customers and new businesses; industry, competitive and technological changes; the loss of, and failure to replace any significant customers; market acceptance of new services; the performance of suppliers and subcontractors; risks associated with international operations and foreign currency fluctuations; the state of the U.S. and global economies in general and other risks detailed in our filings with the Securities and Exchange Commission, including the Company's most recent 10-KSB and subsequent 10-QSBs. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements.

Contact Information

  • Contact:
    Jack Lowry
    CFO
    Catuity Inc.
    734-779-9000 ext. 202
    Email Contact