Proceeds for Enhanced R&D and Sales and Marketing.
November 10 2000
Icron Systems Inc. (CDNX: ICM) is pleased to announce that it has filed a preliminary prospectus to offer units consisting of one common share and one-half of one share purchase warrant (“Warrant”) for gross proceeds of a minimum of $3,000,000 and a maximum of $5,000,000. The pricing of the units will be settled in the context of the market.
Each whole Warrant will entitle the holder to purchase an additional common share for an exercise period to be determined. The exercise price of the Warrants will be determined in conjunction with the pricing of the offering of units. Acumen Capital Finance Partners Limited, Taurus Capital Markets Ltd. and Haywood Securities Inc. (together the “Agents”) have agreed to act as agents for the offering on a best efforts basis. The Agents shall be entitled to receive a cash commission of up to 10% of the gross proceeds of the offering and an option to purchase a number of units equal to 10% of the units subscribed for under the offering for a period of 18 months from the closing of the offering. The Agents will also be granted an option to purchase up to an additional 15% of the units subscribed for under the offering to cover over-allotments, if any.
The proceeds of the offering will be used to fund an enhanced research and development program, including the development of an ASIC version of Icron’s Extreme USB« Technology, an enhanced sales and marketing program and working capital to support revenue growth.
Mats Gerschman, president and CEO of Icron Systems stated, “This financing will help Icron to significantly advance its business plan and help us to secure our leadership position in providing extended range USB products. Although we still have $1,500,000 in cash, we believe that in order to best take advantage of a number of excellent opportunities that are presenting themselves, we need to strengthen our balance sheet now.”
Icron Systems, Inc. of Vancouver, B.C. has invented ExtremeUSB technology, a practical means of extending the range of USB connections from 5 meters to over 100 meters. Icron has applied for patents covering its inventions and is integrating its technology into a series of products for computing applications. Icron’s Ranger TM products are the only USB extenders that are compliant with the USB Implementers Forum’s requirements. Icron is committed to working with its partners to increase the total market for USB products by enabling a broad set of new applications that utilize ExtremeUSB. Icron is a publicly traded company and trades under the symbol ICM on the Canadian Venture Exchange.
Investor Relations: Samantha Haynes email@example.com (604) 940-2239
Media Relations: David Smith firstname.lastname@example.org (604) 638-3925
Note: The company relies on litigation protection for “forward-looking” statements. The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release – including, without limitation, statements regarding production estimates and future plans and objectives of Icron – are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.