VANCOUVER - February 22, 2011 -VendTek Systems Inc. (TSX-V: VSI, the "Company") is pleased to announce that it has closed the brokered portion of its previously announced private placement of units (the "Units").The Company completed the sale of 2,500 Units for gross proceeds of $2,500,000 (the "Brokered Offering").Each Unit consists of one 6% unsecured convertible debenture of the Company having a principal amount of $1,000 and 500 common share purchase warrants (the "Warrants").Subject to adjustment, each Warrant is exercisable for three years from the closing to purchase one common share at a price of $1.00.
The Warrants provide that if the closing average trading price of the Company's common shares for a period of 20 consecutive trading days exceeds $1.50, then the Company may provide notice to the holders of the Warrants that they have only 30 days to exercise the Warrants or they will expire.
The Brokered Offering is subject to regulatory approval and all securities issued in connection with the Brokered Offering are subject to a four-month and one day hold period under applicable securities laws.
As compensation to Versant Partners Inc. and MGI Securities Inc. (together, the "Agents") for their services in connection with the Brokered Offering, the Corporation has paid to the Agents a cash fee of $125,000.
The net proceeds from the sale of the Units will be used for general working capital purposes and to continue the Company's expansion plans in its Brazilian operations.
For more information please contact Samantha White at 604-805-4653 or 1-800-806-4958 or investment@vendteksystems.com.
|