August 24, 2007 13:10 ET

Prosys Announces its Intention to Proceed with a Private Placement of 2.5 Million Along with the Acquisition of a Business

MONTREAL, QUEBEC--(Marketwire - Aug. 24, 2007) - Prosys Tech Corporation ("Prosys") (TSX VENTURE:POZ) wishes to announce that it has taken the steps in order to conclude a private placement of units for a maximum amount of $2,500,000 with investors for the sale of a maximum of 12,500,000 units (the "Units"), at a subscription price of $0.20 per Unit, subject to the approval of the TSX Venture Exchange. This financing, the proceeds of which shall be used for the acquisition described below, may be partly brokered with the payment of a commission.

Each unit consists of one (1) Common Share of Prosys and one half (1/2) warrant. One (1) warrant entitles the holder thereof to purchase, subject to adjustments in certain events, one (1) Common Share at an exercise price of $0.25 for a period of 24 months from the date of the closing of the financing. All of the shares that may be issued are subject to a mandatory holding period of four (4) months from the date of their issuance.

In addition, Prosys is pleased to announce that it is in final talks for the acquisition of a private company offering complete computer infrastructure services, operational support and technical support, which generates sales of more than six million dollars ($6,000,000) and is profitable according to its annual audited financial statements of November 30, 2006, in addition to having approximately 100 employees in North America. This acquisition is for (seventy five percent (75%) of the shares for a total consideration of $3,000,000, namely $2,500,000 in cash and $500,000 in Common Shares of Prosys at a price of $0.20, namely 2,500,00 shares The acquisition is at arm's length and without any finder's fees.

"In addition to offering high profit margin services, this acquisition represents a potential for economies of scale, synergies and highly interesting cross-selling" declared Mr. Georges Hebert, President and Chief Executive Officer of Prosys.

The completion of the above is also conditional to the usual regulatory approvals.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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