Cortex Business Solutions Inc.

Cortex Business Solutions Inc.

April 17, 2008 09:00 ET

Cortex Business Solutions Announces $5 Million Prospectus Offering

CALGARY, ALBERTA--(Marketwire - April 17, 2008) -


Cortex Business Solutions Inc. ("Cortex" or the "Company") (TSX VENTURE:CBX), is pleased to announce that it has entered into an engagement letter with Standard Securities Capital Corporation as agent (the "Agent") to sell by way of a best efforts short form prospectus offering up to 25,000,000 Units of the Company (each a "Unit") at a price of $0.20 per Unit for gross proceeds of up to $5,000,000 (the "Offering"). The Company has filed a preliminary short form prospectus in respect of the Offering with the securities commissions of Alberta, British Columbia, Saskatchewan and Ontario. Cortex intends to use the proceeds of the Offering for general working capital and expansion of its sales and delivery organizations.

Each Unit will be comprised of one common share of the Company ("Common Share") and one-half of one common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share at an exercise price of $0.30 per Common Share. The Warrants will be exercisable for a period of 24 months following the closing of the Offering. The securities will be issued from treasury and subject to regulatory approval and will be offered on a 'best effort' basis by way of a short form prospectus in the provinces of British Columbia, Alberta, Saskatchewan and Ontario.

"We are pleased to be working with Standard Securities to complete this financing" said Ryan D. Lailey, VP Business Development & Corporate Strategy. "With the increased demand Cortex is experiencing for its services, this strategic financing will allow Cortex to accelerate the growth of its network and the Company through increased investments in Cortex's sales and delivery organizations."

The Agent shall receive compensation comprised of cash and broker warrants upon closing of the Offering. The Offering is scheduled to close on or about May 2, 2008, or such other date as the parties may agree and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The Company also announces that the unaudited consolidated financial statements for the three and six month periods ended January 31, 2008 have been restated to reflect changes in the consolidated statement of cash flows for the three and six month periods ended January 31, 2007. The changes include the repayment of convertible debentures in the amount of $32,000 from non-cash working capital from operating activities to financing activities, as well as disclosing a $28,000 non-cash transaction repayment of convertible debentures through the issuance of shares. In addition, a commitment relating to CHF Investor Relations has been added to commitment note 8(b).The combined effect of these changes had no impact to cash flow or net loss for the quarter ended January 31 2007 as previously reported. For a more detailed explanation of the restatement, please refer to Note 3 of the restated January 31, 2008 unaudited consolidated financial statements as filed of SEDAR.

About Cortex Business Solutions Inc.

Cortex solutions increase cash flow, controls and efficiencies in a low cost manner for all of our customers. Information previously anchored by paper that relied on fax, e-mail, mail etc, is now electronically sent and translated, allowing normally non-compatible ERP systems to communicate fluently. We enable the secure electronic exchange of business critical documents such as purchase orders, field receipts, invoices and acknowledgments, between a large cohort of trading partners. Customers can implement the approach quickly and achieve productivity improvements, enhanced cash flow and efficiencies. It offers a sophisticated, non-intrusive, electronic solution to help navigate the procurement and supply chain process with ease and efficiency. Cortex evolves the existing systems by handling the entire business transaction process from purchase point to payment.

To receive Company press releases, please email and mention "Cortex News" on the subject line.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction.

Forward-Looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Except as required by law, the Company does not assume the obligation to update any forward-looking statement.

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

Contact Information

  • Cortex Business Solutions Inc.
    Ryan Lailey
    VP Business Development & Corporate Strategy
    (403) 260-6647
    CHF Investor Relations
    Robin Cook
    Account Manager
    (416) 868-1079 ext. 228
    CHF Investor Relations
    Jacqueline Wagenaar
    Associate Account Manager
    (416) 868-1079 ext. 289