Jul. 23, 2010 (Filing Services Canada) -- RMS Systems Inc. (RMS - TSX Venture), announces that it has completed the private placement of 4,000,000 RMS common shares at a price of $0.20 per common share for gross proceeds of $800,000 (the "Private Placement"). The Private Placement was non-brokered and no brokerage fees, commissions, or other agency fees were paid in relation to it. The common shares were issued through exemptions from prospectus requirements. Except as otherwise permitted by applicable securities laws and except as otherwise permitted by the TSX Venture Exchange, the common shares issued may not be traded for a period of four months plus one day from July 23, 2010 (the date of completion of the Private Placement). There were a total of five subscribers. Two RMS Directors (being John Zang and Willey Wong) subscribed for common shares under the Private Placement (either themselves or through a company controlled by them). Mr. Zang subscribed for a total of 1,075,000 common shares and a company controlled by Mr. Wong subscribed for a total of 425,000 common shares. As a result of the completion of the Private Placement, RMS now has approximately 30,629,382 common shares issued and outstanding.
Dave Hall, CEO of RMS stated that "the raising of these additional funds allows RMS to continue to grow without incurring any bank debt. We are excited about the prospects for the remainder of 2010."
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. David Hall
RMS SYSTEMS INC.
Bay 10, 3419 12th Street NE
Calgary, Alberta T2E 6S6
Tel: (403) 717 9694
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Certain information, including rig count data, is based upon third party information. RMS has not independently verified this data. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although RMS Systems Inc. believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. The nature of the agreements that RMS maintains with its industry partners provides that these agreements are, for the most part, terminable without notice and without penalty. In addition, these agreements provide that revenue is earned only while the drilling rig is in operation. As a result, RMS's revenues are impacted significantly by a reduction in drilling activity by its customers and the RMS expectations may be impacted significantly in the event a customer changes its drilling plans or otherwise terminates its relationship with RMS. RMS revenues are also significantly impacted by weather which on occasion limits drilling activities. RMS Systems Inc. disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise, except as required pursuant to applicable securities laws.
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Source: RMS Systems Inc. (RMS - TSX-V)
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