SOURCE: Ikona Gear International

March 15, 2006 14:40 ET

Ikona Raises $1.2 Million in New Financing

Ikona to Further Expand Into Oil and Gas Exploration Technologies and Global Business Development

COQUITLAM, BC -- (MARKET WIRE) -- March 15, 2006 -- Ikona Gear International, Inc. (OTC BB: IKGI), an innovator in gearing systems technology, today announced that it has closed the sale of $1,200,000 in 10 percent convertible promissory notes, convertible into common stock at the price of $0.50 per share and warrants for 2,400,000 shares of common stock, with an exercise price of $0.59, to accredited investors. Westminster Securities Corporation acted as the sole private placement agent. The proceeds will be used to fund working capital and for general corporate purposes. Ikona has also engaged Westminster Securities Corporation to assist Ikona Gear with financial advisory services, including potential future capital raises and mergers and acquisitions.

"We are pleased to announce our new investment banking relationship with Westminster Securities. We believe Westminster Securities will be an important relationship as we expand our sales and marketing efforts to meet our revenue goals for fiscal 2006," said Ikona CEO and President Laith I. Nosh. "We are also very pleased with the success of the offering, which we increased in size from $750,000 to $1,200,000 to accommodate significant investor demand. The capital will be used to immediately fund several new contracts, support new products for 'Ikona Industries,' our new oil and gas exploration technologies division, and expand manufacturing capacity for our patented gearing solutions."

Ikona recently announced a multi-million dollar global licensing agreement with MAGNA Drivetrain AG & Co KG, a wholly owned division of Magna International Inc. The Company also announced a development and licensing agreement and an order for five satellite base station pedestals, valued at roughly $350,000, with the potential to scale up to $3 million in revenue per year. Additionally, Ikona announced the launch of a new division, Ikona Industries, focusing on oil and gas exploration applications, as well as a recent development agreement with a global supplier of robotic applications.

The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About Ikona Gear International

Ikona Gear is a, knowledge-based company focused on the design and manufacture of innovative and patented solutions for gearing and power transmission applications, a $100 billion market. The Ikona gear system is better, stronger, more precise and generally superior to standard gearing systems. The company's unique, patented technology is ideally suited for deep ratio, weight and size constrained applications where often it is the "only" solution. The Ikona gear technology is the only technology that enables internal gear-sets with only one tooth difference, resulting in a much higher meshing of gears, and significantly higher gear ratios -- very important factors especially in plastic gearing solutions. Ikona trades on the Over the Counter market under the symbol "IKGI" and on the Frankfurt Exchange under the symbol "IG2." For more information on Ikona, please visit www.ikonagear.com/.

About Westminster Securities Corporation

Westminster Securities Corporation is a full-service brokerage firm operating in five principal areas: Investment Banking, Research, Account Management, Execution Services, and Clearing. Founded in 1971, Westminster is a member of the New York Stock Exchange, National Association of Securities Dealers and the Securities Investor Protection Corporation. Westminster is headquartered at 100 Wall Street, New York, NY, with branch offices in Atlanta, Cyprus, Miami, New York, St. Louis and Toronto.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.

Contact Information

  • Investor Relations Contacts:

    Marty Tullio or Mark D. Tullio
    McCloud Communications, LLC
    949.553.9748
    Email Contact
    Email Contact

    Company Contact:

    Scott Rose
    Ikona Gear International
    604.523.5507
    Email Contact