Stealth Ventures Ltd.

September 30, 2011 09:46 ET

Stealth Ventures Ltd. Announces Update

CALGARY, ALBERTA--(Marketwire - Sept. 30, 2011) - STEALTH VENTURES LTD. (the "Corporation") (TSX VENTURE:SLV) is pleased to announce that all matters put forth at its annual general and special meeting of shareholders were approved, including the appointment of Subra Subramaniam, Rudolf Cech, Roger Harman, Ashok Bhasin and Siva Chidambaram as directors of the Corporation.

The Corporation is also pleased to announced that is has completed a first tranche convertible debentures of $1,000,000 of principal amount ("Debentures"). The Debentures bear interest at the rate of ten per cent (10%) per annum, payable annually. The Debentures will have a term of 24 months with a maturity date on the 24 month anniversary of the Debentures. The Debentures will be convertible at the holder's option into units of the Corporation ("Units") at any time prior to the maturity date at a conversion price of $0.12 per Unit. Each Unit will comprise one Common Share and one warrant ("Warrant"). Each Warrant will entitle the holder to acquire one Common Share at a price of $0.15 for a period of two years from the original issuance date of the Debentures. The Corporation may force conversion of the Debentures into Units if the Corporation if the common shares trade, on a 21 day volume weighted average basis, at or above $0.20 per Common Share. The Corporation will have the right to repay the Debentures at the end of the first year or in advance of this date in exchange for payment of interest through the first twelve months.

The net proceeds of the Offering will be used for working capital.

A fee equal to eight percent (8%) of the gross proceeds of the Offering will be paid to a registered dealer in connection with this closing. Completion of the Offering, and the fee of 8%, is subject to receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the Corporation's future operations and prospects. The forward-looking statements and information are based on certain key expectations and assumptions made by the Corporation. Although the Corporation believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Corporation can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the Corporation's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, access to capital markets, interest and currency exchange rates, and political and economic conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. The Corporation undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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

  • Stealth Ventures Ltd.
    Subra Subramaniam
    Chief Executive Officer
    (403) 514-9998