Seprotech Systems Incorporated

Seprotech Systems Incorporated

August 27, 2007 17:17 ET

Seprotech Receives Notices of Intent to Convert Debentures

OTTAWA, ONTARIO--(Marketwire - Aug. 27, 2007) - Seprotech Systems Incorporated (TSX VENTURE:SET)("Seprotech") is pleased to announce it has been advised by several holders of convertible debentures ("Debentures") and all insiders who hold Debentures that they intend to convert their Debenture holdings to common shares of Seprotech effective August 31, 2007.

Seprotech has today sent Notices of Redemption to all Debenture holders of its intention to pay in full by September 28, 2007 any Debenture amount not converted by its holder. Based on current market conditions and the Debenture conversion price of $0.14 per share, Seprotech anticipates that all Debenture holders will convert.

The Debentures are classified as current debt. If all Debenture holders elect to convert their Debentures, $900,000 of current debt will be extinguished and 6,428,571 common shares issued.

"This is a strong vote of confidence from our investors and highlights the improved financial strength and prospects for the Company." Said Martin J. Hauschild, President and CEO. "It significantly enhances our balance sheet and reduces our interest costs by $108,000 per year." Concluded Hauschild.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this news release contain forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual achievements to differ materially from those expressed in the forward-looking statements. Seprotech does not assume responsibility for the accuracy and completeness of the forward-looking statements and do not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Contact Information

  • Seprotech Systems Incorporated
    Mr. Robert J. Searle
    Investor Relations
    613-731-0851 (FAX)