Phonetime provides update on private placement
MISSISSAUGA, ON, April 30 /CNW/ – Phonetime Inc. (TSX: PHD), one of the world’s fastest growing providers of international long-distance telecommunication services, today provided an update on the status of its private placement announced on April 8, 2009. Due to unanticipated delays, the Company now expects to close the brokered financing on May 22, 2009.
As previously disclosed, Phonetime 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, with each unit comprised of one common share and one common share purchase warrant. The offering will generate gross proceeds of up to $1,935,000 (CDN). Phonetime intends to use the proceeds of the financings for working capital purposes.
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.