Vigil Locating Systems Corporation

Vigil Locating Systems Corporation

March 01, 2005 15:41 ET

Vigil Closes Second Tranche of $1,079,000 Worth of Convertible Debentures


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIGIL LOCATING SYSTEMS CORPORATION

TSX VENTURE SYMBOL: VIG

MARCH 1, 2005 - 15:41 ET

Vigil Closes Second Tranche of $1,079,000 Worth of
Convertible Debentures

MONTREAL, QUEBEC--(CCNMatthews - March 1, 2005) - Vigil Locating Systems
Corporation ("Vigil") (TSX VENTURE:VIG) is pleased to announce that it
closed, yesterday, the issuance of secured convertible debentures for
gross proceeds of $1,079,000, pursuant to a final prospectus dated
December 7, 2004.

"Our intention was to proceed with a second financing during the month
of February, which we did, bringing the total funds raised in the
framework of this issuance to close to 2.3 million dollars. Because of
the interest of the financial market, we have decided to extend the date
of the closing to May 31, 2005", declared Mr. Sylvain Gelinas, President
and Chief Executive Officer of Vigil.

The proceeds of this offering will serve primarily to accelerate Vigil's
marketing efforts in Canada, but also to finance certain equipment and
everyday operations.

Vigil's final prospectus of last December 7th provided for the issuance
of secured convertible debentures for minimum gross proceeds of $600,000
and maximum gross proceeds of $3,000,000, plus an over-allotment option
allowing the maximum to be increased to $3,450,000. An amendment to the
prospectus was filed on February 25, 2005 in order to extend the final
closing date to May 31, 2005.

269,750 warrants were also issued to debenture subscribers during this
closing. Each warrant entitles its holder to acquire one common share of
Vigil at a price of $0.75 per share at any time following the date of
the conversion of its debentures, but not later than three (3) years
following the issuance of the warrants.

In the framework of this issuance, Vigil issued to its agent, iForum
Securities Inc., as a commission, 125,000 common shares and 150,000
warrants, entitling it to acquire 150,000 common shares of Vigil at a
price of $0.75 per share for a two-year period following the issuance of
the warrants and paid, also as a commission, an amount equal to 10% of
the gross proceeds of the placement.

About Vigil Locating Systems Corporation (www.vigilgps.com)

Vigil GPS specializes in the conception and commercialization of vehicle
location and recovery systems, by using three well-proven technologies:
satellite GPS, cellular communications and Internet access. Vigil has
developed the very first interactives telematics solution for vehicles
and commercial fleets in the marketplace. Vigil GPS modular solutions
are capable of detecting and reporting events such as theft and
intrusion. Vehicles equipped with Vigil GPS units can be monitored 24/7
by its partner Protectron, Canada's largest provider of security
monitoring.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Paradox Public Relations
    Mr. Eric Leboeuf
    (514) 341-0408
    or
    Vigil Locating Systems Corporation
    Mr. Sylvain Gelinas
    President and CEO
    (514) 683-6000, ext. 209
    or
    iForum Securities Inc.
    Mr. Vittorio Violo
    Corporate Finance
    (514) 875-9456, ext. 236
    The TSX Venture Exchange has neither approved nor accepts any
    responsibility with respect to the veracity or exactitude of this press
    release.