CHEQ-IT Ltd.
TSX VENTURE : CQT

CHEQ-IT Ltd.

May 25, 2006 18:09 ET

Cheq-It Ltd. Closes Private Placement of Units for $300,000 and Makes Changes to Management and Board of Directors

CALGARY, ALBERTA--(CCNMatthews - May 25, 2006) - CHEQ-IT LTD. (TSX VENTURE:CQT) (the "Corporation") is pleased to announce that it has completed its previously announced private placement (the "Offering") of units ("Units") at a price of $0.10 per Unit for gross proceeds of $300,000 as previously announced on May 12, 2006. Each Unit consists of one common share of the Corporation (the "Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant is exercisable into a Common Share for two years at $0.14 per Common Share.

All of the securities issued in connection with this private placement are subject to a four month restricted period that expires on September 24, 2006. The proceeds of the private placement are intended to be used by Cheq-It for general corporate purposes, to evaluate its current business and, if management deems it appropriate, to explore other possible businesses for Cheq-It to pursue. In connection with the private placement Mr. Raymond Huska has surrendered by way of gift for cancellation 1,750,000 Common Shares ("Cancellation"). The private placement remains subject to TSX Venture Exchange final approval.

Further, the Corporation has received the resignation of Mr. Raymond Huska as President and Chief Executive Officer of the Corporation and the board of directors of the Corporation (the "Board") has appointed Mr. John MacMillan to serve as President and Chief Executive Officer in his place. Mr. Raymond Huska has been appointed as Chief Operating Officer of the Corporation. Currently, the management of the Corporation is as follows:



John MacMillan President and Chief Executive Officer
W. Glenn Hamilton Chief Financial Officer
Raymond Huska Chief Operating Officer


Also, the Corporation has received the resignations of Mr. Andrew Burgess and Mr. John D. Hamilton as directors of the Corporation. The Board has appointed Mr. David Mears and Mr. Robert Wilson to fill the vacancies created by these resignations. Currently, the Board is comprised of:



Robert Wilson (Chairman)
Raymond Huska
Robert Krpan
David Mears


Mr. Mears subscribed for 600,000 Units pursuant to the Offering and, upon completion of the Offering, and the Cancellation, Mr. Mears now holds, on a fully diluted basis, 12.8% of the issued and outstanding Common Shares of the Corporation. Gordon Anderson subscribed for 600,000 Units pursuant to the Offering and, upon completion of the Offering and the Cancellation, Mr. Anderson now holds, on a fully diluted basis, 12.8% of the issued and outstanding Common Shares of the Corporation. B. Joan MacMillan, the spouse of John MacMillan, subscribed for 500,000 Units pursuant to the Offering and, upon completion of the Offering and the Cancellation, Ms. MacMillan now holds, on a fully diluted basis, 10.7% of the issued and outstanding Common Shares of the Corporation.


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

Contact Information

  • Cheq-It Ltd.
    Glenn Hamilton
    Chief Financial Officer
    (403) 241-2607