December 20, 2006 17:46 ET

Pontiac Castle Investments Corporation has Completed its Qualifying Transaction and its Financing

MONTREAL, QUEBEC--(CCNMatthews - Dec. 20, 2006) - Pontiac Castle Investments Corporation (the "Corporation" or "Pontiac") (TSX VENTURE:PNC.P) is proud to announce that it has completed its Qualifying Transaction, subject to the Final Exchange Bulletin of the TSX Venture Exchange.

Pontiac has closed a public offering in Quebec for a total of six million seven hundred fifty thousand (6,750,000) Class "A" Shares at a price of twenty cents ($0.20) per Common Share, for a gross proceed totalling one million three hundred fifty thousand dollars ($1,350,000), the whole in accordance with a prospectus dated November 29th , 2006. The Resulting Issuer's Common Shares will be listed on the TSX Venture Exchange (the "Exchange") under the ticker symbol "PNC" following the filing of the final documentation with the Exchange.

Pursuant to the terms of the Qualifying Transaction, the Corporation has thus completed the acquisition of all of the issued and outstanding shares of Prosys-Tec Computers Inc. ("Prosys"), paid through the issuance of thirty million (30,000,000) of Class "A" shares of the Corporation at a deemed issue price of twenty cents ($0.20) per share.

Prosy develops and sells PC servers and notebooks to a well established clientele. Independent manufacturer since December 1991, date of its incorporation, Prosys provides Information Technology (IT) solutions to address the business needs of its customers and helps them to improve their information systems and productivity. With a volume of over thirty-five thousand (35,000) units assembled each year and an assembly production capacity of ninety thousand (90,000) units annually resulting in nearly thirty-five million dollars ($35,000,000) in sales revenues in 2006. The majority of Prosys clientele consists of different Federal and Provincial authorities such as Statistics Canada, the Department of Justice, the Ministry of Environment and different Institutions and Organisations such as Cegeps, School Boards, Ecole Polytechnique, University of Ottawa and major retailers in the industry.

Simultaneously to the qualifying transaction, Pontiac has also acquired all of the issued and outstanding shares of Sona Computer Inc., a Canadian PC manufacturer established in Ottawa and in Newfoundland and forty-nine percent per cent (49%) of Foxwise, a Canadian PC reseller. For an aggregate purchase price of two million six hundred thousand dollars ($2,600,000).

Seguin Racine, Attorneys Ltd received one million two hundred fifty thousand (1,250,000) Common Shares at a deemed price of twenty cents ($0.20) per Common Share, for a total value of two hundred and fifty-two thousand dollars ($250,000) in payment of a finder's fee in relation with the Qualifying Transaction.

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

Contact Information

  • Pontiac Castle Investments Corporation
    Mr. Normand Duval
    Prosys-Tec Computers Inc.
    Mr. Georges Hebert
    514-255-3454, ext. 270