RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Feb. 14, 2006) - MEDICAL VENTURES CORP. (TSX VENTURE:MEV), a medical device company specializing in developing and commercializing cardiovascular and surgical medical devices, is pleased to announce that it has successfully completed a $7.5 million private placement underwritten by Sprott Securities Inc., as lead underwriter, and Canaccord Capital Corporation pursuant to which the underwriters arranged for the purchase of an aggregate of 18,750,000 units at a price of $0.40 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable at a price of $0.65 per share for a period of two years from the closing date. The underwriters fully exercised their over-allotment option to purchase an additional 3,750,000 units. Proceeds from the private placement are to be used for general corporate purposes.
The underwriters were paid a cash commission equal to 7.0% of the gross proceeds of the private placement, except for certain exempt purchasers for which a cash commission of 3.5% was paid. In addition, the underwriters received that number of broker’s warrants equal to 7.0% of the aggregate number of units sold, other than to certain exempt purchasers. Each broker’s warrant is exercisable for a unit for a period of two years from the closing date at a price of $0.455 per unit. All securities issued under the private placement have a hold period of four months expiring on June 15, 2006.
This press release is not an offer of the securities for sale in the United States. The securities offered have not been 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 the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.