|
|
|
|
| Cygnal Technologies announces private placement |
|
| May 14, 2007 |
MARKHAM, ONTARIO, May 14, 2007 – Cygnal Technologies Corporation (TSX: CYN) (“Cygnal” or “the Company”) today announced that it has agreed to offer, by way of private placement, an aggregate of up to 5 million units of the Company (“Units”) at a price of $0.55 per Unit. Each Unit will consist of one common share of the Company (a “Common Share”) and one half of one Common Share purchase warrant. Each whole warrant will entitle the holder to purchase one Common Share at a price of $0.75 for up to five years from the date of the first closing in respect of the financing.
The offering is being brokered on a “best efforts” basis by MGI Securities, which will receive a cash fee of 7% and broker warrants equal to 7% of the units sold. The offering is expected to close shortly after Cygnal’s first quarter 2007 financial results are released on May 15, 2007, and is subject to obtaining regulatory approval.
Cygnal will use proceeds of the offering for general corporate purposes.
About Cygnal
Cygnal Technologies Corporation is a leading Canadian provider of network communication solutions including the design, integration, installation, maintenance and management of wired and wireless solutions and networks. The Company offers a full range of technologies and solutions for service providers and enterprise customers. Cygnal has expertise in voice, video and data solutions over traditional and next generation converged technologies.
Cygnal Technologies Corporation is headquartered in Markham, Ontario and supports end-user customers and business partners through 12 offices across Canada, including Vancouver, Edmonton, Calgary, Winnipeg, London, Burlington, Toronto, Ottawa, Montreal, Quebec City and Halifax. Cygnal common shares are listed on the Toronto Stock Exchange under the symbol CYN.
This news release contains forward-looking statements. Often, but not always, forward looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Cygnal to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include, but are not limited to: factors relating to trends in the communications equipment and services industry, including (1) Cygnal’s ability to maintain and grow its revenues; (2) the opportunity for greater competition to build network infrastructure; (3) the trend toward building next generation core networks; (4) outsourcing by businesses of the design, build and maintenance of their network infrastructure; and (5) an increased demand for private broadband networks. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: Cygnal’s ability to meet its obligations under its debt facilities; full implementation of Cygnal’s cost reduction plan; Cygnal’s ability to compete and to adapt to technological development; the continuation of the Company’s relationships with its suppliers; Cygnal’s ability to recruit and retain qualified personnel; the continuation of positive economic and market conditions, and the ability of provisions in service agreements to limit exposure to potential claims. While Cygnal anticipates that subsequent events and developments may cause its views to change, Cygnal specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing Cygnal’s views as of any date subsequent to the date of this news release.
Although Cygnal has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These factors are not intended to represent a complete list of the factors that could affect Cygnal.
For further information, please contact:
James Shannon
Chief Financial Officer
Cygnal Technologies Corporation
905-944-6572
jshannon@cygnal.ca
Jeff Codispodi
Investor Relations
The Equicom Group Inc.
416-815-0700 ext. 261
jcodispodi@equicomgroup.com
|
|
 |
