Neotel International Inc.
TSX VENTURE : NIT

Neotel International Inc.

June 28, 2005 09:04 ET

Neotel Receives Regulatory Approval For Financing And Acquisition Of IT Security Business

MARKHAM, ONTARIO--(CCNMatthews - June 28, 2005) - Neotel International Inc. ("Neotel")(TSX VENTURE:NIT), and its President, Mr. Howard Phee announces that it has received conditional TSX-V regulatory approval to close on the financing previously announced on June 23, 2005. The offering allows the Company 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 expiry date for the Offering is August 23, 2005.

The Offering will be made in Alberta and British Columbia pursuant to the short form offering document. Leede Financial Markets Inc. has agreed to act as agent for the Offering on a best efforts basis.

The Company also announces the completion of its agreement to acquire a one hundred percent (100%) interest in SecureIT Investigations & Consulting Inc., ("SecureIT") previously announced May 25, 2005. The agreement, which has an effective date of October 1, 2004, has received the necessary regulatory approval.

The cost of the acquisition was satisfied by the issuance of 666,667 common shares of the Company at a deemed value of $0.20 per share and a promissory note in the amount of $200,000 to be paid in two installments - $100,000 on or before July 31, 2005 and $100,000 on or before January 31, 2006.

SecureIT provides unique security and privacy solutions. SecureIT is committed to the design and development of integrated security solutions to cover every requirement of a business, or governments, to ensure respect, confidentiality and trust in the clients' end products. SecureIT works with clients to address any security and privacy issues they may have. Its professionally trained staff and strategic partnerships can provide the variety of solutions that best address the latest technical, physical and intelligence security challenges. SecureIT provides the client with Information Technology, Physical Security and Investigative Intelligence Consulting Assessments of existing and proposed customer corporations, environments and infrastructures. Through analysis of the assessments SecureIT determines the vulnerability of the clients' assets and provides consultation and education on corrective measures.

ABOUT NEOTEL

Neotel is a provider of enterprise information technology, security, privacy and biometrics indentification products and services to organizations, governments and healthcare agencies. Additional information about Neotel is available at www.neotel.ca.

9,214,223 shares outstanding.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Neotel Inc.
    Howard Phee
    President
    (905) 948-9229 ext: 22
    www.neotel.ca