August 13, 2008 18:42 ET

Prosys Announces the Abandonment of a Market Segment and of Activities Following a Deterioration of Its Financial Situation, Along With the Announcement of a Private Placement

MONTREAL, QUEBEC--(Marketwire - Aug. 13, 2008) - Prosys-Tech Corporation ("Prosys" or the "Corporation"), is pleased to announce a non brokered private placement for a total subscription between CDN$425,000 and CDN$800,000 to several individual investors, for a subscription price of $0.10 per unit, subject to the approval of the TSX Venture Exchange. Subscriptions totalling approximately CDN$475,000 shall come from 3 insiders and directors of the Corporation, Mr. Georges Hebert, Mr. Daniel Hebert and Mr. Kerrigan Turner. The decision to make such a private placement stems from the need for the Corporation to promote the development of its projects (CDMS / PEAK) as well as to meet its short term financial obligations.

Each unit will consist of one common share of the Corporation and one common share purchase warrant. Each warrant will entitle the holder thereof, during a period of 24 months from the date of issuance of the warrant, to purchase one common share at an exercise price of $0.12 per common share. Each common shares issued will have a mandatory 4 months holding period.

The Corporation also announces that the management of its subsidiary, Prosys-Tec Computers Inc., (the "Subsidiary"), has chosen to abandon the white box assembly business. Together with representatives of its main lending financial institution, the management of the Subsidiary has chosen to act following the deterioration of its financial position and market circumstances in which the Subsidiary operates. This decision is part of the previously announced restructuring process. All alternatives are currently under study in order to obtain the maximum value for its assets for its sole shareholder, the Corporation. Moreover, the Subsidiary has negotiated and has made contractual arrangements with its main creditors in order to ensure that the abandonment of the white box assembly business takes place in the best interest of creditors and of the sole shareholder. Also, Prosys' IT services division shall continue to provide repair and parts replacement services to the Subsidiary's customers.

About Prosys

Prosys is a distributor of information technology products having offices in Montreal, Quebec and Ottawa. Prosys maintains its participation in CDMS Inc and Peak Positioning Inc. Through CDMS, Prosys also offers a wide range of products, including a 24/7 multilingual technical service desk, network operations and monitoring, managed services, IT consulting and a host of value add hardware solutions. The Corporation currently holds 37% of Peak's issued shares and has an option to increase its participation in Peak to 50.1%. The investment in Peak is in the scope of the Corporation's steps to diversify the global offer of services to its current customers and to improve Prosys' positioning for the development of the SMB market. For more information regarding CDMS and Peak, please visit and

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

Contact Information

  • Prosys Tech Corporation
    Mr. Georges Hebert
    President and Chief Executive Officer
    514-255-3454, extension 270