PKM Preo Software Inc.

PREO SOFTWARE INC. (the "Corporation") (TSX VENTURE:PKM) is pleased to announce
that the first tranche of the Corporation's previously announced private
placement of convertible debentures (the "Debentures") is anticipated to be
completed on or about February 24, 2011. The private placement is being
completed through a syndicate of agents led by Notre-Dame Capital Inc. and
including MGI Securities Inc. (the "Agents").


The private placement will be completed in multiple tranches to allow investors
an opportunity to purchase the Debentures through a Registered Retirement
Savings Plan (RRSP) before the contribution deadline of March 1, 2011 or through
a Tax Free Savings Account (TFSA). 


The Debentures will be for a term of 2 years, will bear interest at a rate of
10% per annum payable on a quarterly basis and in the event of a default for
payment of interest for more than thirty (30) days, the rate of interest shall
be increased to 20% per annum until the default has been rectified. The
outstanding principal under the Debentures may at the option of the holders be
converted into common shares of the Corporation ("Common Shares") at a
conversion price of $0.40 per share. The Debentures shall be automatically
converted into Common Shares at a conversion price of $0.40 in the event that
the Common Shares trade at not less than $0.60 per share for a minimum of 30
consecutive trading days on the facilities of the TSX Venture Exchange.


In connection with the private placement, the Corporation will pay the Agents a
cash commission of 8% of the gross proceeds and will issue options in a number
that is equal to 8% of the number of Common Shares issuable assuming conversion
of all of the Debentures issued under the private placement. Each Agent's option
will entitle the holder thereof to purchase a Common Share at a price of $0.40
per share for a period of 2 years from closing of the private placement.


The net proceeds from the private placement will be used for general working
capital purposes. The Debentures and the Common Shares issuable thereunder will
be subject to a 4 month hold period under applicable securities laws. The
private placement remains subject to the approval of the TSX Venture Exchange.


About Preo(TM) Software 

Preo Software Inc. is the market leader in providing Print Knowledge Management
Systems (PKMS) to enterprises and select OEM's around the world.
Printelligence(TM), the company's award winning SaaS (Software as a Service)
offering, empowers users to optimize their print assets and reduce print volumes
yielding significant cost savings and a smaller environmental footprint. Preo
customers have achieved significant cost reductions through the deployment of
Printelligence's patented PKMS Rules Engine, which allows managers to monitor,
advise and/or control the print function in their organization.


Reader Advisory

Except for statements of historical fact, this news release contains certain
"forward-looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions "may" or "will"
occur. In particular, forward-looking information in this press release
includes, but is not limited to, the anticipated closing date of the private
placement and the use of the net proceeds of the private placement. Although we
believe that the expectations reflected in the forward-looking information are
reasonable, there can be no assurance that such expectations will prove to be
correct. We cannot guarantee future results, performance or achievements.
Consequently, there is no representation that the actual results achieved will
be the same, in whole or in part, as those set out in the forward-looking
information. 


Forward-looking information is based on the opinions and estimates of management
at the date the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those anticipated in the forward-looking information.
Some of the risks and other factors that could cause the results to differ
materially from those expressed in the forward-looking information include, but
are not limited to: general economic conditions in Canada, the United States and
globally; industry conditions, governmental regulation, including environmental
regulation; unanticipated operating events or performance; failure to obtain
industry partner and other third party consents and approvals, if and when
required; the availability of capital on acceptable terms; the need to obtain
required approvals from regulatory authorities; stock market volatility;
competition for, among other things, capital, skilled personnel and supplies;
changes in tax laws; and the other risk factors disclosed under our profile on
SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors
should not be construed as exhaustive.  


The forward-looking information contained in this news release is expressly
qualified by this cautionary statement. We undertake no duty to update any of
the forward-looking information to conform such information to actual results or
to changes in our expectations except as otherwise required by applicable
securities legislation. Readers are cautioned not to place undue reliance on
forward-looking information. 


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 of
the United States or any other jurisdiction outside of Canada in which such
offer, solicitation or sale would be unlawful. The securities have not been
registered under the U.S. Securities Act of 1933, as amended, or any state
securities laws and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of
the U.S. Securities Act of 1933 and applicable state securities laws.

Preo Software Inc. (TSXV:PKM)
Historical Stock Chart
From Oct 2024 to Nov 2024

Preo Software Inc. (TSXV:PKM)
Historical Stock Chart
From Nov 2023 to Nov 2024