Prestige Telecom Inc.

Prestige Telecom Inc.

September 11, 2007 18:35 ET

Prestige Telecom Announces Increase in Private Placement

MONTREAL, QUEBEC--(Marketwire - Sept. 11, 2007) - Prestige Telecom Inc. (the "Company" or "Prestige Telecom") (TSX VENTURE:PR) today announced that it has increased the size of the second tranche of its previously announced private placement (the "Private Placement") to a gross amount of $1,100,000.

The Private Placement will consist of 2,200,000 units of the Company (the "Units") issued at a price of $0.50 per Unit. Each Unit will consist of a common share and one-half of a common share purchase warrant (a "Warrant"), with each Warrant entitling the holder to acquire an additional common share of Prestige Telecom 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 Telecom 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.

An aggregate of $1,000,000 of the Private Placement is subject to the Ministere du Revenu du Quebec confirming that the common shares of the Company 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. Closing of $1,000,000 of the Private Placement is expected to take place once ACCRO eligibility is confirmed.

Loewen, Ondaatje, McCutcheon Limited and GMP Securities Ltd. will act as agents for the Private Placement (the "Agents"). Prestige Telecom 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 Telecom Agent's Options") to purchase 8% of the number of Prestige Telecom Units sold under the Prestige Telecom Private Placement, with each Prestige Telecom 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.

About Prestige Telecom

Prestige Telecom is a leading provider of network engineering, materials furnishings, installation and support services (commonly referred to as E, F&I services) required to construct, operate and maintain wireline, wireless, and cable television networks.

Prestige Telecom assists telecommunications original equipment manufacturers ("OEM") and service providers to engineers, install and upgrade their wireless, wireline and cable television network infrastructures to support enhanced voice, high speed data and video services.

In Canada, Prestige Telecom operates from three full service locations based in Baie d'Urfe (Montreal), Quebec; Mississauga (Toronto), Ontario and Calgary, Alberta and has more than 250 professional and technical personnel. Prestige Telecom operates in the United States market through a mutual subcontractor agreement with Comforce Telecom Inc. under the trade name Prestige Comforce Professional Services ("PCPS"). PCPS is based in Plano, Texas and provides services to customers throughout the United States.

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