PROSYS TECH CORPORATION
TSX VENTURE : POZ

September 08, 2008 12:02 ET

Prosys Announces a Share for Debt of $1,022,000 and the Partial Closing for an Amount of $625,000 of the Announced Private Placement

MONTREAL, QUEBEC--(Marketwire - Sept. 8, 2008) - Prosys-Tech Corporation ("Prosys" or the "Corporation") (TSX VENTURE:POZ) announces the first closing of the non brokered private placement previously announced for a total subscription of CDN$625,000 with several individual investors, for a subscription price of $0.10 per unit, subject to the approval of the TSX Venture Exchange and of any other securities authority. Subscriptions totalling approximately CDN$475,000 come from 3 insiders and directors of the Corporation, Mr. Georges Hebert, Mr. Daniel Hebert and Mr. Kerrigan Turner. The Corporation intends to complete a second closing to raise up to CDN$175,000 in the next few days. 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.

Moreover, the Corporation announces that it will issue common shares in order to settle a loan as well as interest and management fees related to said loan contracted with the FIER CPVC-Montreal. Prosys will issue 4,257,643 common shares at a price of $0.24 per share in settlement of an amount of $1,021,834.48. This transaction is subject to the TSX Venture Exchange approval and the approval of any other securities authority.

Resignation of Directors

Finally, the Corporation announces the resignations of Normand Duval as a Director for personal reasons and of Pierre-Hubert Seguin as Corporate Secretary and as a Director for reasons stemming from his professional activities.

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 www.cdmsfirst.com and www.peakpositioning.com.

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