CALGARY, AB, MAY 06, 2002 Following the Alberta and Ontario Securities Commissions' Decision Document dated April 26, 2002, Cell-Loc Inc. (TSE: CLQ), a leading developer of network-based wireless location technology, today announced that it will file an amended and restated preliminary prospectus for an offering of subscription shares under a line of equity providing the company with aggregate proceeds of up to US $40 million.
Cell-Loc will have the option, at its discretion, to draw down on this facility from time to time over a period of 24 months in return for an issuance of the company's common shares.
"Having the option, without the obligation, to access capital while the company deploys its commercial Cellocate Beacon™ networks will provide the necessary bargaining power to optimize the inherent value of our technology, which will include taking larger participation interests in each deployment where we expect the vast majority of future revenues to be derived," said Sheldon Reid, executive vice president, corporate and business development, Cell-Loc Inc. "The line of equity will also serve to exploit opportunities to continue to lower our manufacturing and deployment costs which is paramount in a market that continues to be challenged by today's capital markets."
Reid added, "The Company applauds the diligence demonstrated by the regulators in their review of this form of financing. As a new and potentially popular method of financing, a thorough analysis was required to ensure the viability of a financing vehicle which will benefit publicly traded companies in Canada while addressing public policy concerns which must always be considered when forging innovative ways of attracting capital."
The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals and to the execution of definitive documentation.
About Cell-Loc Inc.
Cell-Loc Inc. (www.cell-loc.com), a leader in the wireless location industry, is the developer of Cellocate™, a family of wireless location products that enable location-based services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and supports its patented wireless location technology globally. Cell-Loc is listed on the Toronto Stock Exchange under the trading symbol: “CLQ.”
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Forward Looking Statements: This news release contains certain forward- looking statements. All statements, other than statements of historical fact, included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Cell-Loc does not undertake an obligation to update forward-looking statements should conditions or management's estimates or opinions change.
Note to Editors: Cell-Loc, Cellocate, Cellocate System, Cellocate Beacon, TimesThree and LocationBroker are trademarks of Cell-Loc Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
Cell-Loc contact:
Tammy Yamkowy
Manager, Public Relations
Phone: (403) 569-5748
tammy.yamkowy@cell-loc.com