CIMATEC ENVIRONMENTAL ENGINEERING INC.
TSX VENTURE : CEG

CIMATEC ENVIRONMENTAL ENGINEERING INC.

July 19, 2005 14:40 ET

Cimatec Environmental Engineering Inc. Announces Securities for Debt Exchange, Private Placement, and Stock Option Issuance

TORONTO, ONTARIO--(CCNMatthews - July 19, 2005) - Cimatec Environmental Engineering Inc. (TSX VENTURE:CEG) ("Cimatec") advises that it intends to issue two convertible three-year term debentures bearing interest calculated at the Bank of Nova Scotia prime rate plus two percent in exchange for $800,953.00 of existing demand loans and certain trade payables. The debenture-holders will have first security over all property of Cimatec subject to subordination that may be granted in the future to a Canadian chartered bank providing operating loans to Cimatec. The principal amount of the convertible debenture will be convertible at the option of the holder at $0.20 per common share.

The balance of these existing demand loans and trade payables, totalling $554,644.06 will 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, each unit comprising one common share and one share purchase warrant. Each warrant will be exercisable for a period of one year at an exercise price of $0.20 per share.

Concurrently in an arm's length private placement Cimatec will issue 670,000 units at a price of $0.15 per unit, each unit comprising one common share and one share purchase warrant exercisable for a period of one year at an exercise price of $0.20 per share.

Cimatec also advises that it has granted a total of 3,050,000 stock options, of which 1,300,000 were granted to directors and officers, 1,050,000 to employees and 700,000 to consultants. The options are exercisable at $0.20 per share and will expire on December 31, 2008.

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)
    andrew@cimatec.com