SOURCE: Norsat International Inc.

January 15, 2007 06:00 ET

Norsat Issues 1 Million Common Shares Under ESOP

VANCOUVER, BC -- (MARKET WIRE) -- January 15, 2007 -- Norsat International Inc. (TSX: NII) (OTCBB: NSATF), a leading provider of intelligent satellite solutions, today announced that it has issued and received consideration for 1,065,968 common shares and 532,984 non-transferable common share purchase warrants in connection with its Employee Share Ownership Plan announced December 11th, 2006.

The Company generated gross proceeds of $479,686 and issued common shares at the same price as the previous private placement at US$0.40, or CAD$0.45. Subscribers received one-half of one non-transferable share purchase warrant for each common share purchased. Each whole share purchase warrant entitles the holder to purchase one common share at a price of $0.54 (or US$0.48) for two years from the closing date, January 12th, 2006. The issued and outstanding share capital of the company is now 50,628,526 common shares.

"We had broad-based interest with the entire management team and the majority of the employees and directors participating," said Dr. Amiee Chan, President and CEO, Norsat International Inc.

All of the common shares and warrants (and shares issuable on the exercise of the warrants) are subject to a four-month hold period which ends May 13, 2007. During this period, these securities cannot be traded nor are they freely transferable.

Of the securities issued under this private placement, 145,644 common shares will be held in escrow under an escrow agreement between the Company and a trust company selected by the BC government until January 12, 2010. The escrow requirement applies to employee shareholders resident in British Columbia, who have elected to receive tax credits under the Employee Investment Act (British Columbia). Employee shareholders may seek government approval for an early release from escrow upon the repayment of any tax credits received.

The proceeds will be used for working capital purposes.

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.

This information should be read in conjunction with the Company's unaudited interim consolidated financial statements and related notes included therein for the three and nine months ended September 30, 2006, and the restated 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

About Norsat International, Inc.

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

Contact Information

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