WebTech Wireless Inc.
TSX : WEW

WebTech Wireless Inc.

March 01, 2011 11:44 ET

WebTech Wireless Closes $6.0 Million Bought Deal Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2011) -

THIS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT TO BE DISTRIBUTED TO UNTIED STATES NEWSWIRE SERVICES OR DISSEMINATED IN THE UNITED STATES

WebTech Wireless Inc. (TSX:WEW) today announced that it has completed its previously announced bought deal private placement offering (the "Offering") of 15,000,000 common shares at a price of $0.40 per share for total gross proceeds to the Company of C$6,000,000. The Offering includes the exercise of an over-allotment of 5,000,000 common shares that was granted to Versant Partners Inc., on behalf of the syndicate of underwriters which included Paradigm Capital Inc. and PI Financial Corp. The Company plans to use the net proceeds from the Offering for working capital and for general corporate purposes.

"This transaction strengthens our balance sheet as we continue to expand our business to meet the growth opportunities within the corporate and public segments of the telematics sector," Scott Edmonds, President and CEO of WebTech Wireless. "We have successfully evolved the business from predominately a hardware model to a software-as-a-service (SaaS) model and this new capital will assist us to service existing and new customers and verticals under the SaaS approach."

This news release is not an offer of common shares for sale in the United States. The common shares issued pursuant to the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of the above described securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About WebTech Wireless®

WebTech Wireless Inc. (TSX:WEW) is a provider of vehicle fleet location-based services (LBS) and telematics technology. It develops, manufactures and supports end-to-end wireless solutions that improve the productivity, profitability, environmental compliance and safety of vehicle fleets. Its comprehensive suite of products and services include: automatic vehicle location (AVL), mapping, vehicle diagnostics, CO2 reporting, navigation, messaging, and mobile resource management. The Company serves customers of all sizes in the transport, government, service, insurance and OEM markets in over forty-one countries, including Fortune 500 companies. Specialized products include: Quadrant® commercial fleet solutions, InterFleet® solutions for government, and NextBus® real-time passenger information services for transit fleets. For more information, please visit www.webtechwireless.com.

This News Release may contain forward-looking statements involving risks and uncertainties pertaining to, but not limited to, product plans, timing, content, pricing of products, market and industry expectations, the wireless communications and mobile fleet industries, and general economic and political conditions. Given the risks and uncertainties inherent in the markets and industries referred to in this News Release, WebTech Wireless cannot guarantee that any forward-looking statements will be realized. All amounts in Canadian dollars (CAD$) unless otherwise noted. Trademarks are the property of their owners.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information