MicroPlanet Technology Corp. (TSXV:MP) ("MicroPlanet" or the "Company"), a developer of distributed-energy technologies to improve electric power grid reliability and efficiency, today announced that the Company has entered into an agreement with Magna Partners Ltd. ("Magna") under which Magna has agreed to act as agent of MicroPlanet to raise, on a best-efforts basis, up to $10 million in Canadian dollars through the sale of units ("Units") at an offering price of $0.75 per Unit.
Each Unit will consist of one common share of MicroPlanet and one-half of one common share purchase warrant. Each whole warrant will be exercisable for one common share at a price of $1.00 per share for a period of 18 months from the closing date. If at any time during the exercise period of the warrants the volume weighted average price at which MicroPlanet's common shares have traded on the TSX Venture Exchange for any 20 consecutive trading days exceeds $1.50 per share, MicroPlanet will notify the warrantholders and the warrants will expire 30 days following the date of such notice.
Magna has the option to increase the size of the offering to up to $12,000,000 by the sale of an additional 2,666,667 Units prior to the closing date. MicroPlanet will pay Magna a commission of 7.5% of gross proceeds and will issue compensation options equal to 7.5% of the number of Units purchased under the offering. The units underlying the compensation options will be exercisable at a price of $.75 per Unit for a period of 18 months following the closing date.
The offering is scheduled to close on or about February 24, 2006 and is subject to certain conditions including, but not limited to, satisfactory due diligence and the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
Proceeds from the offering are to be used to fund MicroPlanet's business strategy and for general working capital purposes.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the United States. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements.
About MicroPlanet Technology Corp.
Based in Seattle, Washington, MicroPlanet is a distributed-energy technologies company that offers least-cost energy solutions for utilities and customers to promote more reliable power delivery and electrical energy conservation. The Company manufactures and markets a proprietary line of electronic voltage regulation products. MicroPlanet's Low Voltage Regulator(TM) (LVR(TM)), High Voltage Regulator(TM) (HVR(TM)), Enterprise Voltage Regulator(TM) (EVR(TM)) and Enterprise Voltage Regulator 3P(TM) (EVR 3P(TM)), regulate the voltage delivered to a business or home, reducing the amount of electricity needed. MicroPlanet's voltage compliance products provide electric utilities a new tool for peak load reduction, conservation, low voltage mitigation and an interface for distributed generation.
MicroPlanet is a public company whose common shares are listed for trading on TSX Venture Exchange (TSXV) under the symbol: "MP". The Company has approximately 21.3 million common shares outstanding. Visit MicroPlanet at: www.microplanet.com and www.investorfile.com.
MicroPlanet is a trademark of MicroPlanet. All other trademarks and
registered trademarks are those of their respective companies.
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN.
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For further information: MicroPlanet Company Contacts: Brian Reidy, President & Chief Executive Officer, Tel: (206) 625-0851, dbreidy@microplanetltd.com; MicroPlanet Investor Relations: Gerry Wimmer, INVESTORFILE.com, Tel: (416) 360-8895, Toll Free: 1-888-894-8222, gwimmer@investorfile.com; Magna Partners Ltd. (Agent) Contact: Mary Matthews, (416) 640-0503 x225, matthews@magnapartners.com; David Andrews, (416) 640-0503 x222, andrews@magnapartners.com