Neotel International Inc.
TSX VENTURE : NIT

Neotel International Inc.

June 23, 2005 12:01 ET

Neotel Announces Details Of Financing

TORONTO, ONTARIO--(CCNMatthews - June 23, 2005) - Neotel International Inc. ("Neotel" or the "Corporation")(TSX VENTURE:NIT) announces that it is filing documentation with the TSX Venture Exchange for a brokered public offering ("Offering"), by way of short form offering document, to issue a minimum of 2,500,000 units ("Units") at a price of $0.20 per Unit and up to a maximum of 5,000,000 Units for maximum gross proceeds of up to $1,000,000. Each Unit will consist of one common share and one common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at a price of $0.30 for a period of 12 months from the date of grant.

The Offering will be made in Alberta and British Columbia pursuant to the short form offering document subject to acceptance by the TSX Venture Exchange. Leede Financial Markets Inc. has agreed, subject to satisfactory due diligence results, to act as agent for the Offering on a commercially reasonable efforts basis and will receive a cash commission equal to 10% of the gross proceeds received by the Corporation and an option to purchase that number of Units equal to 10% of the Units sold exercisable at a price of $0.20 per Unit for a period of 12 months from the closing of the Offering.

The Corporation intends to use the proceeds to further develop its biometric product offerings, expand its Internet security services, repayment of debt, and for working capital purposes.

Certain directors and officers of Neotel may subscribe to the Offering. Pursuant to the policies of the TSX Venture Exchange and Ontario Securities Commission Rule 61-501 ("Rule 61-501") the Offering may therefore be classified as a "related party transaction." Assuming receipt of regulatory approval and the availability of applicable exemptions from the requirements of Rule 61-501, it is anticipated that Neotel may close the Offering less than 23 days after the filing of the material change report required by Rule 61-501.

8,414,223 shares outstanding

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Neotel International Inc.
    Howard Phee
    President
    (905) 948-9229