Preo Software Inc.

Preo Software Inc.

July 07, 2010 17:34 ET

Preo Software Inc. Secured Loan Financing

CALGARY, ALBERTA--(Marketwire - July 7, 2010) -


PREO SOFTWARE INC. (the "Corporation") (CNSX:PKM). The Corporation has obtained a bridge loan in the principal amount of $150,000 in accordance with the terms of a Loan Agreement with Foundation Equity II Limited Partnership (the "Lender"). The terms of the Loan Agreement provide for a maturity date of 12 months, an administration fee of $7,500 and if the loan remains outstanding for more than 30 days, then interest will start accruing at a rate of 20% per annum. The Corporation's obligations under the Loan Agreement are secured by the Lender against the assets of the Corporation. The proceeds under the loan will be used for general working capital purposes. The Lender also anticipates participating in the short form offering document financing of Karel Capital Corporation ("Karel") previously announced in conjunction with the proposed amalgamation of Karel and the Corporation for purposes of completing a Qualifying Transaction. The Corporation anticipates retiring the loan immediately on completion of the financing and Qualifying Transaction, expected to be completed later this month.

As of the date hereof, Foundation Equity Corporation ("Foundation") a related party of the Lender, holds approximately 30% of the outstanding common shares of the Corporation and also holds other debt and warrants to acquire additional common shares. Mike Cabigon and Nate Glubish directors of the Corporation are related parties of the Lender and Foundation.

Preo Software Inc. is the market leader in providing Print Knowledge Management Systems (PKMS) to enterprises around the world. Printelligence™, the Corporation's award winning SaaS (Software as a Service) offering, empowers users to optimize their print assets and reduce print volumes yielding significant cost savings and a smaller environmental footprint. The Corporation's customers have achieved significant cost reductions through the deployment of Printelligence's patented PKMS Rules Engine, which allows managers to monitor, advise and/or control the print function in their organization.

The Canadian National Stock Exchange (CNSX) has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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