QCC Technologies Inc.

QCC Technologies Inc.

August 23, 2005 16:05 ET

QCC Technologies Inc. Announces Closing Private Placement for $4,500,000 and Acquisition of Shares

CALGARY, ALBERTA--(CCNMatthews - Aug. 23, 2005) - QCC Technologies Inc. (TSX VENTURE:QCC) ("QCC") is pleased to announce that it has completed a private placement of 10 million units ("Units") at the price of $0.45 per unit for proceeds of $4,500,000, previously announced on July 29, 2005, subject to TSX Venture Exchange final approval. Each Unit consists of one common share and one-half of one common share purchase warrant. Each full warrant entitles the holder to purchase one common share until August 21, 2006 upon payment of the exercise price of $0.75. All of the securities issued in connection with this private placement are subject to a four month restricted period that expires on December 23, 2005. The proceeds of the private placement are intended to be used by QCC to fund acquisitions.

Wolverton Securities Ltd. received a fee equal to 8% of the aggregate gross proceeds for their placement for a total cash commission of $54,828 and 121,840 compensation warrants ("Compensation Warrants") each entitling the holder to acquire one common share of QCC. The Compensation Warrants are exercisable at any time for a period of up to 2 years following the date of closing at an exercise price of $0.45 per share.

After giving effect to the private placement, QCC has 38,476,119 common shares issued and outstanding.

Lyncorp International Ltd. ("Lyncorp"), a corporation controlled by David Mullen, acquired a total of 1,875,000 common shares of QCC on August 19, 2005 pursuant to a share purchase agreement. Following completion of this acquisition, Lyncorp owns 16,180,884 common shares of QCC. Following the acquisition and prior to the private placement, Lyncorp owns approximately 57% of the total number of common shares of QCC outstanding. Following the private placement, Lyncorp owns approximately 42% of the total number of common shares of QCC outstanding. Lyncorp is purchasing common shares of QCC for investment purposes. Presently, Lyncorp does not have any intention of acquiring any further securities of QCC, but may acquire ownership of or control over further securities of QCC in the future depending upon market circumstances.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • QCC Technologies Inc.
    Sid Dutchak
    President and CEO
    (403) 242-6041