DEQ Systems Corp.
TSX VENTURE : DEQ

DEQ Systems Corp.

June 28, 2005 16:58 ET

DEQ Systems Announces the Closing of a $6,000,000 Private Placement of Units and Subscription Receipts

QUEBEC CITY, QUEBEC--(CCNMatthews - June 28, 2005) - DEQ Systems Corp. ("DEQ") (TSX VENTURE:DEQ) announces that it has completed its private placement of 4,705,882 units at a price of $0.85 per unit and 2,352,941 subscription receipts at a price of $0.85 per subscription receipt for gross proceeds of $6,000,000. McFarlane Gordon Inc., Canaccord Capital Corp. and Northern Securities Inc. have acted as underwriters in connection with the offering made in Ontario, Alberta and British Columbia. A portion of the offering was made directly by DEQ.

Each unit is comprised of one common share of DEQ and one-half of a common share purchase warrant of DEQ. Each subscription receipt will entitle the holder thereof to receive, without the payment of any additional consideration, one unit when the corporation certifies, no later than July 14, 2005 or such later date as may be agreed to by the underwriters and DEQ, that the acquisition of all the outstanding shares of DP Stud has been duly completed (the "Release Condition"). The gross proceeds from the subscription receipts less the amount required to pay the underwriters' fee and expenses and the costs and expenses attributable to the issue and sale of the subscription receipts totalling approximately $1.8M are held in escrow pursuant to an escrow agreement pending the satisfaction of the Release Condition.

Each full DEQ share purchase warrant entitles its holder to subscribe for one common share of DEQ at a price of $1.20 at any time on or before 5:00 p.m. (Toronto Time) on December 28, 2006.

Earle G. Hall President and CEO of DEQ stated: "This financing achievement is a concrete step towards our company's success. With our projects adequately financed, it is now possible to focus on growth and shareholder value."

The TSX Venture Exchange does not assume any liability regarding the relevancy or the accuracy of this news release.

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