June 17, 2008 14:46 ET

Prosys Announces an Issue of Shares for Debt

MONTREAL, QUEBEC, CANADA--(Marketwire - June 17, 2008) - Prosys-Tech Corporation ("Prosys")(TSX VENTURE:POZ), announces today that, pursuant to what was announced on April 7, 2008 and May 9, 2008, it has issued 8,333,333 common shares at a price of $0.24 per share pursuant to an agreement reached with the Business Development Bank of Canada to convert $2,000,000 of a $3,000,000 subordinated loan of its subsidiary Prosys-Tec Computers Inc. into common shares of Prosys. The said common shares are subject to an holding period of four months following their issue.

Mr. Georges Hebert, President and Chief Executive Officer stated: "This conversion of the subordinated financing enables Prosys to save approximately $450,000 per year in interest fees and is incorporated into a broader internal restructuring and cost cutting process enabling Prosys to save approximately $1,500,000 a year in total."

About Prosys

Prosys is a computer manufacturer and distributor of information technology products having offices in Montreal, Quebec, Ottawa, St-John's and Vancouver. Through its subsidiary CDMS, Prosys also offers a wide range of products, including 24/7 multilingual technical service desk, network operations and monitoring, managed services, IT consulting and a host of value add hardware solutions. The vast customer base of Prosys is divided among various market niches. Prosys' main clients are the Governments of Canada and Quebec, crown corporations, universities, school boards and CEGEPs throughout the province of Quebec. 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.

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