MTI Global Inc.

MTI Global Inc.

August 15, 2008 18:01 ET

MTI Global Inc. Re-Prices Warrants as Part of an Amended Financing Arrangement With Lender

MISSISSAUGA, ONTARIO--(Marketwire - Aug. 15, 2008) - MTI Global Inc. ("MTI Global")(TSX:MTI) announced today a warrant amending agreement (the "Warrant Amending Agreement") with Wellington Financial LP (the "Lender"), an arm's length party, to re-price the unlisted common share purchase warrants underlying the special warrants issued in connection with the subordinated debt financing previously announced on June 3, 2008 (the "Debt Financing"). MTI Global and the Lender entered into the Warrant Amending Agreement in connection with MTI Global not achieving its June 30, 2008 EBITDA covenant contemplated by the terms of the Debt Financing as announced on August 13, 2008.

In connection with the Debt Financing, MTI Global issued the Lender 3,230,769 special warrants. Each special warrant was convertible into one common share purchase warrant (collectively, the "Warrants"), without payment of any additional consideration, entitling the holder thereof to purchase one common share of MTI Global at a price of $0.65 per share at any time on or before June 3, 2013.

Pursuant to the terms of the Warrant Amendment Agreement, the exercise price of the Warrants is changed to $0.43, representing the volume weighted average trading price of the common shares for the five trading days immediately preceding the date hereof. The re-pricing of the Warrants will take effect in 10 days. All other terms of the special warrants and the Warrants will remain the same.

About MTI Global Inc.:

MTI Global Inc. (TSX:MTI) designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on three main product categories: Silicone, Aerospace and Fabricated Products. MTI's manufacturing divisions develop and produce silicone foam using patented technology. The Company designs and fabricates energy management systems from a variety of flexible, cellular materials. MTI also produces and distributes specialty silicone elastomer products. MTI's primary markets are aerospace and mass transit. Secondary markets include sporting goods, automotive, industrial, institutional, electronics, and the medical market through a 51% interest in MTI Sterne SARL of Cavaillon, France. MTI's head office and Canadian manufacturing operations are located in Mississauga, Ontario, with international manufacturing operations located in Richmond and Buchanan, Virginia; Pensacola, Florida; Bremen, Germany; and a contract manufacturer venture in Ensenada, Mexico. The Company also has sales operations in England and Sweden, and an engineering support centre in Brazil. The Company's website is

The foregoing press release contains forward-looking statements and is subject to important risks and uncertainties. Although MTI Global believes that the expectations reflected in any forward-looking statements are reasonable, the results or events predicted in these statements may differ materially from actual results or events. Forward looking statements are based on estimates and assumptions derived from past experience, historical trends, current conditions and expected future developments. Many factors could cause results or events to differ from current expectations, including the impact of price and product competition, general industry and market conditions and growth rates and reliance on key customers. For additional information with respect to these and other factors, see the reports filed by MTI Global Inc. with the applicable securities regulatory authorities at MTI Global Inc. disclaims any intention or obligation to update or revise any forward-looking statements.

Contact Information

  • MTI Global Inc.
    Bill Neill
    President & Chief Executive Officer
    (905) 564-9700
    Fleishman-Hillard Canada
    Anne Lachance
    Investor Relations
    (416) 214-0701