Prosys Announces the Abandonment of a Market Segment and of Activities Following a Deterioration of Its Financial Situation, Alo
August 13 2008 - 5:42PM
Marketwired
Prosys-Tech Corporation ("Prosys" or the "Corporation"), is pleased
to announce a non brokered private placement for a total
subscription between CDN$425,000 and CDN$800,000 to several
individual investors, for a subscription price of $0.10 per unit,
subject to the approval of the TSX Venture Exchange. Subscriptions
totalling approximately CDN$475,000 shall come from 3 insiders and
directors of the Corporation, Mr. Georges Hebert, Mr. Daniel Hebert
and Mr. Kerrigan Turner. The decision to make such a private
placement stems from the need for the Corporation to promote the
development of its projects (CDMS / PEAK) as well as to meet its
short term financial obligations.
Each unit will consist of one common share of the Corporation
and one common share purchase warrant. Each warrant will entitle
the holder thereof, during a period of 24 months from the date of
issuance of the warrant, to purchase one common share at an
exercise price of $0.12 per common share. Each common shares issued
will have a mandatory 4 months holding period.
The Corporation also announces that the management of its
subsidiary, Prosys-Tec Computers Inc., (the "Subsidiary"), has
chosen to abandon the white box assembly business. Together with
representatives of its main lending financial institution, the
management of the Subsidiary has chosen to act following the
deterioration of its financial position and market circumstances in
which the Subsidiary operates. This decision is part of the
previously announced restructuring process. All alternatives are
currently under study in order to obtain the maximum value for its
assets for its sole shareholder, the Corporation. Moreover, the
Subsidiary has negotiated and has made contractual arrangements
with its main creditors in order to ensure that the abandonment of
the white box assembly business takes place in the best interest of
creditors and of the sole shareholder. Also, Prosys' IT services
division shall continue to provide repair and parts replacement
services to the Subsidiary's customers.
About Prosys
Prosys is a distributor of information technology products
having offices in Montreal, Quebec and Ottawa. Prosys maintains its
participation in CDMS Inc and Peak Positioning Inc. Through CDMS,
Prosys also offers a wide range of products, including a 24/7
multilingual technical service desk, network operations and
monitoring, managed services, IT consulting and a host of value add
hardware solutions. The Corporation currently holds 37% of Peak's
issued shares and has an option to increase its participation in
Peak to 50.1%. The investment in Peak is in the scope of the
Corporation's steps to diversify the global offer of services to
its current customers and to improve Prosys' positioning for the
development of the SMB market. For more information regarding CDMS
and Peak, please visit www.cdmsfirst.com and
www.peakpositioning.com.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed Transaction and has neither approved nor
disapproved the contents of this press release.
Contacts: Prosys Tech Corporation Mr. Georges Hebert President
and Chief Executive Officer 514-255-3454, extension 270
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