SINGAPORE, SINGAPORE, Oct. 23, 2009 (Marketwire) -- Zecotek Photonics Inc. (TSX VENTURE:ZMS)(FRANKFURT:W1I), a developer of leading-edge photonics technologies for medical, industrial and scientific markets, today announced that it has increased and subsequently closed the non-brokered private placement previously announced on August 19, 2009. The Company has sold 5,925,000 units of the Company at a price of $0.63 per unit for gross proceeds of $3,732,750, an increase from the original offering of 1,940,000 units at $0.63 per unit for $1,222,200.
Each unit consists of one common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $1.00 per common share at any time on or before the 24-months anniversary of the closing of the offering. The Warrant's exercise period will automatically accelerate if the common shares of the Company trade above $1.50 for a period of 10 consecutive trading days. Net proceeds from the funds raised will be used for general working capital purposes.
Pursuant to the financing, the Company will pay a finder's fee equal to 7% of the gross proceeds of the sale of the Shares and issue non-transferable finder's warrants to purchase common shares equal in number to 6% of the units sold under the private placement. Each finder's warrant entitles the holder to purchase one Share at $1.00 for a period of 24 months after the date the private placement closes. All shares and warrants are subject to a four-month hold period expiring on February 24, 2010.
Zecotek Photonics Inc. (TSX VENTURE:ZMS)(FRANKFURT:W1I) is a photonics technology company developing high-performance crystals, photo detectors, lasers, optical imaging and 3D display technologies for commercial applications in the medical diagnostics and high-tech industries. Founded in 2003, the company operates three distinct divisions: imaging, lasers and 3D display, with labs located in Canada, USA, Singapore and Russia. Zecotek commercializes its novel, patented and patent-pending photonic technologies directly and through strategic alliances and joint ventures with multinational OEMs, distributors and other industry leaders. For more information, please visit www.zecotek.com.
This press release may contain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what may have been stated.
If you would like to receive news from Zecotek in the future please visit the corporate website at www.zecotek.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.