CIMATEC ENVIRONMENTAL ENGINEERING INC.
TSX VENTURE : CEG

CIMATEC ENVIRONMENTAL ENGINEERING INC.

September 27, 2005 17:19 ET

Cimatec Environmental Engineering Inc. Announces Securities for Debt Exchange and Private Placement

TORONTO, ONTARIO--(CCNMatthews - Sept. 27, 2005) -

Attention Business/Financial Editors

Cimatec Environmental Engineering Inc. (TSX VENTURE:CEG) ("Cimatec") advises that it has issued two convertible three-year term debentures bearing interest calculated at the Bank of Nova Scotia prime rate plus two percent in exchange for settlement of $800,953.00 of existing demand loans and certain trade payables. The debenture-holders 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 is 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 have been exchanged for settlement of 3,697,626 common shares at a rate of $0.15 per common share. One of the convertible debenture holders, also a participant in the shares for debt exchange, is a non-arm's length party. Two other participants in the shares for debt exchange are also non-arm's length parties.

Concurrently in an arm's length private placement aggregating $100,500 Cimatec issued 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.

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