Phonetime announces private placement
Will raise up to $1.94 million
MISSISSAUGA, ON, April 8 /CNW/ – Phonetime Inc. (TSX: PHD), one of the world’s fastest growing providers of international long-distance telecommunication services, announced today it has entered into an engagement agreement with First Republic Capital Corporation, on a “best efforts” agency basis, for a private placement of units to accredited investors, each unit comprised of one common share and one common share purchase warrant. The offering will generate gross proceeds of up to $1,935,500 (CDN). Phonetime intends to use the proceeds of the financing for working capital purposes. The financing, which is subject to the completion of definitive documentation and regulatory approval, is expected to close by April 30, 2009.
The private placement to accredited investors will consist of an offering of up to 12.9 million units, each unit comprised of one common share and one common share purchase warrant, at a subscription price of $0.15 per unit. Each common share purchase warrant will be exercisable, at any time during the two year period following the closing of the private placement, to purchase one common share at an exercise price of $0.30 per share.
“Raising almost $2 million under current market conditions reflects positively on the investment community’s belief in our long-term potential,” said Wayne Silver, President and CEO of Phonetime. “The proceeds will enable us to execute the next stage of our growth, particularly as we build on the success of our Wholesale Division and continue our expansion into the EMEA (Europe, Middle East & Africa) and Asia-Pacific regions.”
About Phonetime Inc.
Established in 1994, Phonetime is a leading supplier of international wholesale and retail long distance telecommunications services with network facilities in Canada, the U.S., Europe, Africa and Asia. Through its Wholesale Division, Phonetime buys and resells long-distance services to major telephone carriers around the world using its proprietary call trading platform. Through its Retail Division, Phonetime provides subscription-based long distance services to targeted ethnic consumers across Canada and competitively markets a range of pre-paid long distance phone cards. Phonetime’s common shares trade on the Toronto Stock Exchange under the symbol PHD. More information can be found at the Company’s website, www.phonetime.com
Caution Regarding Forward Looking Information:
This press release contains forward-looking statements, which may be identified by words like “expects”, “anticipates”, “plans”, “intends”, “indicates” or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime’s actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time.