FTI Foodtech International Inc.
TSX VENTURE : FTI

FTI Foodtech International Inc.

June 25, 2008 15:36 ET

FTI Announces Closing of $500,000 Private Placement

TORONTO, ONTARIO--(Marketwire - June 25, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

FTI Foodtech International Inc. ("FTI" or the "Corporation") (TSX VENTURE:FTI) today announces that it has closed its previously announced private placement financing (the "Offering"). FTI has sold 5,000,000 subscription receipts of the Corporation (the "Subscription Receipts") at a price of $0.10 per Subscription Receipt for gross proceeds of $500,000. Each Subscription Receipt will entitle the holder to receive, for no additional consideration, one unit of FTI ("Unit"), consisting of one common share of the Corporation (the "Common Shares") and one common share purchase warrant (the "Warrants"), with each Warrant entitling the holder to purchase one Common Share at a price of $0.15 per share for a period of 24 months following the closing date of the Offering (the "Closing Date").

The gross proceeds of the Offering will be placed in escrow, pending completion of a reorganization by FTI pursuant to which, and subject to FTI shareholder approval, FTI will amend and restate its articles under the Business Corporations Act (British Columbia) and will be continued under the Canada Business Corporations Act (the "Reorganization"). The exchange of the Subscription Receipts into Units will occur upon the completion of the Reorganization. In the event the Reorganization is not completed, or FTI decides not to proceed with the Reorganization by August 31, 2008, the funds will be returned to the subscribers.

Becher McMahon Capital Markets Inc. acted as agent of the Corporation in connection with the Offering and in connection therewith was paid a cash commission equal to 8% of the gross proceeds, and was granted agent's options (the "Agent's Options") to purchase 10% of the number of Subscription Receipts sold under the Offering, with each Agent's Option entitling the holder to purchase one Unit at a price of $0.10 per Unit for a period of 24 months from the date the Closing Date.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

Contact Information

  • FTI Foodtech International Inc.
    William Hullah
    President
    (416) 444-1058