CSM Systems Corp.
TSX VENTURE : CKX

CSM Systems Corp.

March 05, 2008 10:19 ET

CSM Systems Corp. Announces $350,000 Convertible Debenture Private Placement

EDMONTON, ALBERTA--(Marketwire - March 5, 2008) - CSM Systems Corp. (TSX VENTURE:CKX) ("CSM"). Further to the press release disseminated on January 17, 2008, CSM has decided not to proceed with the $500,000 Unit financing and instead plans to complete a non-brokered private placement of up to C$350,000 aggregate principal amount of 8.0% unsecured non-demand convertible debentures (the "Debentures") due and payable on the third anniversary of the date of issuance of the debentures. The conversion price of the Debentures shall be $0.28 per common share if converted in the first year, $0.35 per common share if converted within the second year and $0.45 per common share if converted within the third and final year of the term of the Debenture. It is not anticipated that any new insiders will be created, nor that any change of control will occur, as a result of the private placement. The Debentures and the underlying common shares of CSM issued on conversion shall be subject to a statutory four-month hold period from the date of Closing.

Completion of the financing will be subject to agreement of formal documentation setting out the full terms and conditions of the Debentures and all normal regulatory approvals, including approval of the TSX Venture.

Proceeds of the private placement will be used for the continued roll out of ViCCi units pursuant to the Ivanhoe Cambridge agreement, marketing, product development and as working capital for general operating activities. The completion of the private placement is subject to regulatory approval.

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

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