CSM Systems Corp.
TSX VENTURE : CKX

CSM Systems Corp.

May 02, 2008 17:29 ET

CSM Systems Corp. Closes $235,000 Convertible Debenture Private Placement

EDMONTON, ALBERTA--(Marketwire - May 2, 2008) - CSM Systems Corp. (TSX VENTURE:CKX) ("CSM"). Further to the press release disseminated on March 5, 2008, CSM is pleased to announce that it has closed a non-brokered private placement of $235,000 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. No new insiders were created, nor did a change of control 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 (expires September 3, 2008).

Completion of the financing will be subject to 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 TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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