Plasma Environmental Technologies Inc.
TSX VENTURE : PE

Plasma Environmental Technologies Inc.

September 02, 2005 15:46 ET

Plasma Announces Options And Other Matters

TORONTO, ONTARIO--(CCNMatthews - Sept. 2, 2005) -

This press release is not for distribution to any U.S. news wire services or for dissemination in the United States of America.

Plasma Environmental Technologies Inc. (TSX VENTURE:PE) announces it has granted an aggregate of 1,000,000 stock options to officers, directors and consultants of the Company. The options are exercisable at $0.10 and expire on August 26, 2010, except for two consultants who will have their options vested on the basis of 4,000 options per quarter starting March 31, 2005, with an exercise price equal to the closing price at the end of the quarter and a consultant who will have his options vested on a basis of 2,500 per quarter starting June 30, 2005, with an exercise price equal to the market price at the end of each quarter and expire two years after granting.

The Company has entered into consulting contracts with arm's length consultants for the provision of consulting services to the Company. Pursuant to a consulting agreement between Bridgepoint Group and the Company, the consultant will be paid $4,000 a month for a period of one year. The Company and the consultant have agreed, subject to regulatory approval, to satisfy $2,500 per month of the consulting fees through the issuance of shares at a deemed price of the average closing price per share on a daily basis. Pursuant to the second consulting agreement between the Company and Robert Wilson and Associates, the consultant will be paid $5,000 a month for a period of three months, which can be extended to one year. The Company and the consultant have agreed, subject to regulatory approval, to satisfy $2,000 per month of the consulting fees through the issuance of shares at a deemed price of $0.10 per share. Pursuant to a third consulting agreement, Dr. Chang will receive 2,000 shares per year in consideration of providing consulting service to the Company starting April 1, 2005.

The Company has extended the management agreement with Dr. Wayne Maddever, a director and consultant for one year. The Company has agreed to pay, in addition to other compensation, Dr. Maddever, $1,500 per month in shares at a deemed price of $0.10 per share, subject to regulatory approval.

The Company has also reached an agreement with two of its creditors for the conversion of up to $47,630 principal amount of promissory notes, plus accrued interest. One of the promissory notes was originally a demand note, which has been changed to a convertible promissory note maturing May 6, 2006. Payment on the other promissory note cannot be demanded until January 1, 2006. In consideration of the amendment of the terms of the promissory notes, the Company has agreed, subject to regulatory approval, to amend each of the convertible notes to provide interest at an annual rate of 12%. Both of the notes provide that principal is convertible into units at a price of $0.05 per unit. Each unit is to be comprised of one common share and common share purchase warrant, each warrant entitling the holder to acquire a common share on or before May 6, 2006 at an exercise price of $0.10.

The Company has also reached an agreement with a creditor for the extension of the maturity date of a $40,000 convertible promissory note. The convertible note was originally due on August 19, 2003, which has been extended until August 19, 2005. The convertible promissory note was issued on February 19, 2003, bears interest at an annual rate of 12% and is convertible into common shares of the Company at a price of $0.05 per share.

The grant of options, payment of fees through shares, amendment to the promissory notes and private placements are all subject to regulatory approval, including the approval of the TSX Venture Exchange.

Shares Outstanding: 31,526,536

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

Contact Information

  • Plasma Environmental Technologies Inc.
    Alex Falconer
    CFO
    (905) 332-9693