Cortex Business Solutions Inc.
TSX VENTURE : CBX

Cortex Business Solutions Inc.

May 06, 2011 07:52 ET

Cortex Business Solutions Inc. Announces $5,004,000 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - May 6, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

(figures in Canadian dollars)

Cortex Business Solutions Inc. (TSX VENTURE:CBX) (the "Company") announces that it has entered into an agreement with a syndicate of underwriters (the "Underwriters"), led by Stonecap Securities Inc., whereby the Underwriters have agreed to purchase, on a bought deal basis, 11,120,000 units (the "Units") from treasury of the Company at a purchase price of $0.45 per Unit (the "Issue Price") for gross proceeds of $5,004,000 (the "Offering").

Each Unit shall consist of one common share (the "Common Shares") and one-half of one common share purchase warrant (the "Warrants"). Each whole Warrant shall entitle the holder thereof to acquire one common share of the Company at $0.60 for 18 months following Closing.

The Company has granted the Underwriters an option to purchase up to an additional 15% of the Units at the Issue Price exercisable up to 48 hours prior to closing of the Offering for additional gross proceeds of up to $750,600.

The net proceeds of the Offering will be used for expanding marketing and business development in the United States, sector expansion, working capital and general corporate purposes.

The Offering will be made by way of private placement to accredited investors in all provinces of Canada. The Offering is expected to close on or about May 31, 2011, 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 and the relevant securities regulatory authorities. The Units will be subject to a four-month hold period.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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