RMS Systems Inc.
TSX VENTURE : RMS

RMS Systems Inc.

May 12, 2011 09:09 ET

RMS Systems Inc. Completes $7,361,000 Common Share Offering

CALGARY, ALBERTA--(Marketwire - May 12, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

RMS Systems Inc. ("RMS" or the "Corporation") (TSX VENTURE:RMS) is pleased to announce that it has completed its previously announced bought- deal private placement offering (the "Offering") of common shares ("Common Shares") of the Corporation. In connection with the Offering, RMS issued 10,825,000 Common Shares at a price of $0.68 per Common Share for aggregate gross proceeds of $7,361,000. The Common Shares are subject to a four-month hold period which will expire on September 13, 2011.

In connection with the Offering, Cormark Securities Inc., as underwriter, received a fee in a total amount equal to 7% of the gross proceeds of the Offering as well as broker warrants ("Broker Warrants") equal to 7% of the aggregate number of Common Shares issued pursuant to the Offering. Each Broker Warrant entitles the holder thereof to acquire one Common Share at a price of $0.68 for a period of 24 months from today.

The net proceeds from the Offering will be used to fund RMS' capital expenditures as well as for general working capital purposes.

Cautionary Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects, including the use of proceeds from the Offering, that constitute forward looking statements.

These statements are based upon assumptions that are subject to significant risks and uncertainties. These risks include, but are not limited to a reduction in drilling activity in the United States and/or Canada. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although RMS believes that the expectations reflected in forward- looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. The nature of the agreements that RMS maintains with its industry partners provides that these agreements are, for the most part, terminable without notice and without penalty. In addition, these agreements provide that revenue is earned only while the drilling rig is in operation. As a result, RMS' revenues are impacted significantly by a reduction in drilling activity by its customers and the RMS expectations may be impacted significantly in the event a customer changes its drilling plans or otherwise terminates its relationship with RMS. RMS revenues are also significantly impacted by weather which on occasion limits drilling activities. RMS disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise, except as required pursuant to applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • RMS Systems Inc.
    Mr. Dave Hall
    Bay 10, 3491 12th Street NE
    Calgary, Alberta T2E 6S6
    (403) 717-9694