SOURCE: Norsat International Inc.

November 07, 2006 18:41 ET

Norsat Applies to Reprice March Warrants

VANCOUVER, BC -- (MARKET WIRE) -- November 7, 2006 -- Norsat International Inc. (TSX: NII) (OTCBB: NSATF) announced today that it has applied to the Toronto Stock Exchange ("TSX") for approval to amend the exercise price of each of the 3,065,232 common share purchase warrants issued in March 2006. The proposed amendment would reduce the exercise price of the warrants from US$0.75 to US$0.475 (the US dollar equivalent of the volume weighted average trading price of Norsat's common shares for the 5 trading days ended November 3, 2006). The amendment will take effect November 22nd, 2006, subject to receipt of the TSX approval. All other terms of the warrants will remain the same, including the expiry date of March 2008. None of the warrants are held by insiders of Norsat.

The application to reprice the warrants is pursuant to the terms of Norsat's March 2006 private placement financing. The Company had agreed with the holders of the warrants to use its best efforts to amend the exercise price of the warrants to any lower price at which Norsat may issue common shares during the two-year term of the warrants. Norsat announced on October 26, 2006 that it had closed an unbrokered private placement of Units, comprised of convertible secured debentures and common share purchase warrants exercisable for 2 years at a price of US$0.45.

Forward-Looking Statements

Statements in this news release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third party manufacturing, managing rapid growth, global sales risks, limited intellectual property protection and other risks and uncertainties described in Norsat's public filings with securities regulatory authorities.

The information should be read in conjunction with the Company's audited consolidated financial statements, related notes included therein and Management Discussion and Analysis for the year ended December 31, 2005. All the Company's financial statements are prepared in accordance with generally accepted accounting principles in Canada (Canadian GAAP). Additional information from the year ended December 31, 2005, and other information related to the Company, may be found on the company's website at www.norsat.com.

About Norsat International Inc.

Norsat International Inc. designs, engineers and markets intelligent satellite solutions for high-speed data transmission. Additional information is available at www.norsat.com. Further information is available through email at communications_investorrelations@Norsat.com or by phone, 1-604-821-2808.

Contact Information

  • Contact:

    Norsat International Inc.
    Dr. Amiee Chan
    +1 (604) 821-2808
    Email Contact