Zecotek Photonics Inc. Announces Non-Brokered Private Placement
Published: Oct 19, 2010
SINGAPORE, SINGAPORE--(Marketwire - October 19, 2010) - Zecotek Photonics Inc. (TSX VENTURE: ZMS)(FRANKFURT: W1I), a developer of leading-edge photonics technologies for medical, industrial and scientific markets, today announced that the Company has arranged for a non-brokered private placement of 2,830,188 units of the Company at a price of $0.53 per unit for gross proceeds of $1,500,000.
Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $0.70 per common share at any time on or before the 24-month anniversary of the closing of the offering. The Warrant's exercise period will automatically accelerate if the common shares of the Company trade above $1.25 for a period of 10 consecutive trading days.
Net proceeds from the funds raised will be used to complete licensing agreements and technology transfer for commercialization in the Company's three operating division, to build and maintain patents of the IP portfolio and for general working capital purposes.
Pursuant to the financing, the Company may pay a finder's fee, equal to 5% of the gross proceeds of the sale of the Shares and issue non-transferable finder's warrants to purchase common shares equal in number to 7% of the units sold under the private placement, subject to the approval of regulatory authorities. Each finder's warrant will entitle the holder to purchase one Share at $0.70 for a period of 24 months after the date the private placement closes. All shares and warrants are subject to a four-month hold period.
Zecotek Photonics Inc. (TSX VENTURE: ZMS)(FRANKFURT: W1I) is a photonics technology company developing high-performance crystals, photo detectors, lasers, optical imaging and 3D display technologies for commercial applications in the medical diagnostics and high-tech industries. Founded in 2003, the company operates three distinct divisions: imaging, lasers and 3D display, with labs located in Canada, USA, Singapore and Russia. Zecotek commercializes its novel, patented and patent-pending photonic technologies directly and through strategic alliances and joint ventures with multinational OEMs, distributors and other industry leaders. For more information, please visit www.zecotek.com.
This press release may contain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what may have been stated.
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Zecotek Phototonics Inc.
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