CIMATEC ENVIRONMENTAL ENGINEERING INC.
TSX VENTURE : CEG

CIMATEC ENVIRONMENTAL ENGINEERING INC.

September 21, 2005 17:58 ET

Cimatec Environmental Engineering Inc. Announces Amendment to Previously Announced Shares for Debt Transactions

TORONTO, ONTARIO--(CCNMatthews - Sept. 21, 2005) -

Attention Business/Financial Editors

Cimatec Environmental Engineering Inc. (TSX VENTURE:CEG) ("Cimatec") advises that there has been an amendment to the shares for debt transactions previously announced on July 19, 2005.

As previously announced, Cimatec proposes to issue two convertible three-year term secured debentures in exchange for $800,953.00 of existing demand loans and certain trade payables. The principal amount of each convertible debenture will be convertible at the option of the holder at $0.20 per common share. In the announcement of July 19th, 2005 it was anticipated that the balance of certain existing demand loans and trade payables, totalling $554,644.06, would be exchanged for 2,030,961 common shares at a rate of $0.15 per common share, and for 1,666,667 units at a rate of $0.15 per unit. As of today, one creditor has withdrawn from participation in the shares for debt exchange for the amount of $250,000, while two non-arm's length parties have agreed to enter into shares for debt exchange agreements amounting to $250,000 in the aggregate. The terms of the amended shares for debt exchange are identical to those originally contemplated except there will be no warrants issued. Therefore, with the amendment of today, existing demand loans and trade payables amounting to $554,644.06 will be exchanged for 3,697,627 shares.

There has been no change to the arm's length private placement. Under this private placement Cimatec will issue 670,000 units at a price of $0.15 per unit. Each unit issued will comprise one common share and one common share purchase warrant. Each warrant issued will be exercisable for a period of one year at an exercise price of $0.20 per share.

Each of the securities issued will be subject to a four-month hold period commencing on the date of distribution.

THIS PRESS RELEASE WAS PREPARED BY CIMATEC ENVIRONMENTAL ENGINEERING INC. WHICH ACCEPTS THE RESPONSIBILITY AS TO ITS ACCURACY. NO REGULATORY AUTHORITY OR SIMILAR BODY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

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

Contact Information

  • Cimatec Environmental Engineering Inc.
    Andrew Roblin
    Chief Executive Officer
    (416) 289-8882
    (416) 289-4185 (FAX)
    e-mail: andrew@cimatec.com
    931 Progress Avenue, Unit 8-10, Toronto, Ontario, M1G 3V5