PITT MEADOWS, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2011) -
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Tranzeo Wireless Technologies Inc. (TSX:TZT), a leading producer of high-speed wireless broadband communication systems announces that its board of directors has approved private placement financings totalling $2.216 million. The private placement financings will be comprised of $1.216 million of secured convertible debentures and $1.0 million of units at a price of $0.20 per unit. The secured convertible debentures will have a term of two years, will bear interest at 10% per annum and will be convertible at the option of the holder at a conversion price of $0.30 per share. In addition, the secured convertible debentures will be subject to automatic conversion in the event that the Company's common shares trade at a price of greater than $0.60 per share for 20 consecutive trading days. The units will be comprised of one common share and one share purchase warrant. Each share purchase warrant will entitle the holder to purchase one additional common share at a price of $0.30 per share for a term of one year. The warrants will be subject to a 30 day accelerated exercise period in the event that that the Company's common shares trade at a price of greater than $0.60 per share for 20 consecutive trading days.
The Company has received conditional approval from the TSX for the private placement financings. Closing is anticipated during the week of August 15, 2011.
The proceeds will be used as working capital to enable the Company to execute on existing orders and contracts, including orders from the Company's India customers.
Tranzeo and the Tranzeo logo are registered trademarks of Tranzeo Wireless Technologies Inc.
About Tranzeo Wireless Technologies Inc:
Tranzeo Wireless Technologies Inc. (TSX:TZT) leads the wireless broadband industry as a premier manufacturer of high-performance wireless network equipment that allows communities and businesses to communicate without boundaries. Tranzeo's full spectrum of point-to-point and point-to-multipoint radios, WiMAX equipment, and mesh network solutions are designed for wireless internet service providers, governments, campuses, military, carriers, enterprise customers, and systems integrators around the globe. Headquartered in British Columbia, Canada, Tranzeo also has offices in San Diego, California, San Jose, California, and Indonesia. Visit http://www.tranzeo.com or phone 1.866.872.6936 for more information.
This press release contains forward-looking statements that involve risks and uncertainties. We use words such as "anticipate", "plan", "expect", "believe", "intend" and similar expressions to identify forward-looking statements that relate to our business, management, operating results and financial condition. These statements are not historical facts, but reflect our current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risk Factors" in our Annual Information Form and Management's Discussion and Analysis which may be found on SEDAR at www.sedar.com.