KIK Polymers Inc

September 01, 2011 11:24 ET

KIK Polymers Inc.: Subscription Receipts Convert to Shares

CALGARY, ALBERTA--(Marketwire - Sept. 1, 2011) - KIK Polymers Inc. (TSX VENTURE:KPI.H) ("KIK") announces that the $6,469,750 of subscription receipts issued at $0.25 each were converted in accordance with their terms after receiving conditional approval of the proposed Edgewater RTO transaction from the TSX Venture Exchange. The holders of the 25,879,900 subscription receipts received, without further consideration, one common share of KIK and one share purchase warrant exercisable for 2 years at $0.45, subject to acceleration of the expiry date in the event the KIK shares trade at a price equal to or greater than $0.67 per share for 20 or more consecutive trading days on the TSXV. Aggregate finders' fees of $430,990 and 1,723,960 one year warrants exercisable at $0.25 were issued to certain brokers that assisted in raising the these funds.

The shares and warrants issued to holders of subscription receipts will be subject to trading restrictions equal to 4 months from the date that the subscription receipts were issued. The broker warrants will be subject to trading restrictions until January 1, 2012.

The Company anticipates that the closing of the proposed Edgewater RTO will take place by mid September, 2011.

Edgewater Wireless

A wholly owned subsidiary of Edgewater Computer Systems, Inc., Edgewater Wireless Systems, Inc. develops and commercializes leading edge technologies and intellectual property for the communications market. Backed by an extensive patent portfolio, the flagship EAP3000 product family leverages an internally developed, high-performance multi-channel, standards compliant radio chipset that targets the rapidly growing demand for data communications capacity. With a customer base that includes some of the world's largest telcos and enterprises, Edgewater Wireless' EAP3000 product family delivers significantly greater bandwidth density, advanced network visibility, improved security, and network reliability required to meet the demands generated by the explosive growth in data communications occurring around the world. Drawing from top industry professionals, Edgewater Wireless is managed by an experienced team with extensive commercialization and development expertise in advanced wireless, communications and semiconductor solutions. For more information, please visit

Founded in 1988, Edgewater Computer Systems, Inc. (ECSI) is a privately held provider of advanced computer and communications technology products for enterprise, military and industrial computing and networking applications. Leveraging greater than $50M of investment in the development of multi-channel wireless technology and the expansion of the EAP3000 product family, ECSI continues to invest in growing the business in targeted markets around the world. In February 2011, ECSI spun out its Wireless Business Unit as Edgewater Wireless Systems, Inc. For more information, please visit


Completion of the proposed transaction is subject to a number of conditions, including but not limited to, final Exchange acceptance and if applicable pursuant to the requirements of the Exchange, shareholder approval. Where applicable, the proposed transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the proposed transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the filing statement or management information circular to be prepared in connection with the proposed transaction, any information released or received with respect to the proposed transaction may not be accurate or complete and should not be relied upon.

Trading in the securities of KIK should be considered highly speculative.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning KIK's proposed transaction with Edgewater. The forward-looking statements and information are based on certain key expectations and assumptions made by KIK, including expectations and assumptions concerning its ability to raise capital, and meeting other conditions precedents to the transaction, including regulatory approval and completing due diligence. Although KIK believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because KIK can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause KIK's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to access to capital markets and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. KIK undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.

The securities of the Corporation have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.


Contact Information

  • KIK Polymers Inc.
    Lew Dillman

    Edgewater Wireless
    Andrew Skafel
    613-271-1101 x 2262