Prestige Telecom Inc.

Prestige Telecom Inc.

August 30, 2007 19:19 ET

Prestige Telecom Announces Extension of Closing Date for Its Private Placement

MONTREAL, QUEBEC--(Marketwire - Aug. 30, 2007) - Prestige Telecom Inc. (TSX VENTURE:PR) (the "Company" or "Prestige") today announced that the closing date of the second tranche of its previously announced private placement (the "Private Placement") for a gross amount of $1,000,000 has been extended and is expected to close by the end of September 2007, subject to the Ministere du Revenu du Quebec confirming that the common shares of the Company (the "Prestige Common Shares") meet the criteria of the definition of eligible shares set out in the Quebec SMB Growth Stock Plan (ACCRO). The ACCRO program allows individuals and institutions to claim a 100% deduction on their Quebec taxes for any ACCRO eligible shares they purchase.

The Private Placement consists of units of the Company (the "Units") issued at a price of $0.50 per Unit. Each Unit consists of a Prestige Common Share and one-half of a common share purchase warrant (a "Warrant"), with each Warrant entitling the holder to acquire an additional Prestige Common Share at a price of $0.60 per share for a period of 18 months from the date of issuance.

The Warrants will, upon notice, be required to be exercised (or they will expire) in the event that the common shares of Prestige trade on a recognized stock exchange at a closing trading price per share of $0.90 or greater for any twenty business day period. The proceeds of the Private Placement will be used to fund acquisitions and for general working purposes. Prestige has engaged Loewen, Ondaatje, McCutcheon Limited and GMP Securities Ltd. to act as agents for the Private Placement (the "Agents").

Prestige will pay the Agents a cash commission of 8% in connection with the Private Placement. The Agents will also be granted agent's options (the "Prestige Agent's Options") to purchase 8% of the number of Prestige Units sold under the Prestige Private Placement, with each Prestige Agent's Option entitling the holder to purchase one Unit at a price of $0.50 per unit for a period of 18 months from the date of issuance.

The TSX Venture Exchange Inc. has in no way passed upon the merits of and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Prestige Telecom Inc.
    Pierre Yves Methot
    Chairman and Chief Executive Officer
    (514) 457-4488 ext. 277