Plaintree News Release
Plaintree Receives Funds from Taurus Capital for Compensation Options
OTTAWA, Oct. 25 /CNW/ - Plaintree Systems Inc. ("Plaintree"), is pleased
to announce that it has received from Taurus Capital Markets Ltd. ("Taurus")
$436,000 to exercise compensation options for the purchase of 400,000 units of
Plaintree. Plaintree issued the compensation options to Taurus as part of the
special warrant financing which closed on March 30, 2000 and raised gross
proceeds of CDN $10 million for Plaintree. As a result of this exercise, there
are now 86,059,869 common shares of Plaintree issued and outstanding.
Each unit comprises one common share from the treasury of Plaintree and
one half of one common share purchase warrant. Each warrant entitles Taurus to
acquire one common share from the treasury of Plaintree at a price of $2.00
per common share until June 30, 2001. A further 400,000 compensation options
issued to Taurus in connection with the March financing remain outstanding.
Each compensation option is exercisable to acquire one unit of Plaintree at a
price of $1.09 per unit until March 30, 2002.
About Plaintree Systems
Founded in 1988, Plaintree Systems Inc. is a leading manufacturer of
network switches and optical fiberless LAN and telecommunications products.
Using infrared (LED) technology, Plaintree's high-quality products offer high-
speed data and voice transmission without any licensing requirements. These
links are easy to install and are safe, secure, reliable, and robust to avoid
costly network downtime. Unlike other network solutions, these fiberless links
can be densely co-located to provide big bandwidth connectivity without the
frequency problems associated with crowded airwaves. The technology is a cost-
efficient alternative to the expense of laying cable to connect the 'last
mile'. Internet service providers and cellular operators are some of the
potential markets for Plaintree's systems. Another high-potential niche market
is the avionics industry, where radio frequencies are tightly regulated.
Plaintree is headquartered in the Ottawa region and operates
manufacturing facilities for both switches and wireless products in Arnprior,
Ontario. Plaintree is publicly traded in Canada on the Toronto Stock Exchange
and in the U.S. on the OTC Bulletin Board, with 86,059,869 shares outstanding.
Plaintree maintains a world-wide web site at plaintree.com.
This press release may include statements that are forward-looking and
based on current expectations. The actual results of the company may differ
materially from current expectations. The business of the company is subject
to many risks and uncertainties, including changes in markets for the
company's products, delays in product development and introduction to
manufacturing and intense competition. For a more detailed discussion of the
risks and uncertainties related to the company's business, please refer to
documents filed by the company with the U.S. Securities and Exchange
Commission and Canadian regulatory authorities, including the company's
prospectus dated July 10, 2000.
%SEDAR: 00001576E
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For further information: Roxanne Doroszkiewicz, Plaintree Systems Inc.,
Tel: (613) 274-7979, E-mail: ir@plaintree.com
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