Company: SAMSys Technologies Inc.
Stock Symbol: SMY
Listing: Montreal Exchange (ME)
Outstanding Shares: 21.6 Million (Fully Diluted)
Web Site: www.samsys.com
TORONTO, Aug. 3 /CNW/ - SAMSys Technologies Inc. (SMY:ME)
(www.samsys.com) ("SAMSys" or the "Company") of Toronto, a provider of Radio
Frequency Identification (RFID) reader hardware today announced that the
Company has entered into an agency letter of intent with Taurus Capital
Markets Ltd. ("Taurus" or "Agent") whereby Taurus will act as SAMSys'
exclusive agent on a best-efforts basis to complete a Special Warrant Private
Placement (the "Offering") to raise a minimum of $5,000,000 and maximum of
$7,000,000 in equity financing proceeds. SAMSys has also granted the Agent a
15% "Greenshoe" option, which enables the Agent to increase the issue size of
this Offering by 15%. The Offering is subject to, among other things, receipt
of all necessary approvals from regulators and satisfactory completion of due
diligence by the Agent. The proceeds from the Offering will be principally
used for the commercial production of SAMSys' proprietary RFID reader
technology, research and development and for on-going working capital
requirements. The Offering is expected to close within 30 days (the "Closing
Date") of the signing of the agency letter or such other date as agreed to by
the Company and the Agent. The Offering price for the Special Warrant Units is
expected to be determined within the next 14 days in the context of the
market.
Each Special Warrant Unit will allow the holder to acquire securities in
the Company consisting of a Common Share plus one full Common Share Purchase
Warrant. Each Common Share Purchase Warrant will entitle the holder to
purchase one Common Share at the strike price (which is expected to be
determined within the next 14 days at pricing in the context of the market)
until the expiry date. The expiry date will be eighteen (18) months from the
earlier of: (i) the date of the receipt for the final prospectus and (ii) 12
months following the Closing Date.
SAMSys expects to file and obtain receipts for a final prospectus
qualifying the Common Share and Common Share Purchase Warrants to be issued
upon the exercise of Special Warrants Units in the Provinces of Alberta,
Ontario and British Columbia within 110 days from the Closing Date. Unless the
final prospectus is filed and receipt issued by the applicable securities
regulatory authorities within 110 days from the Closing Date, each Special
Warrant Unit Holder will be issued 1.15 Common Shares and 1.15 Common Share
Purchase Warrants upon the exercise of the Special Warrant Unit without
payment by the holder of any additional consideration.
As compensation for the completion of this financing the Agent will
receive 7.0% of the gross proceeds of the Offering and compensation options
entitling the Agent to purchase 10% of the Offering at the Offering Price
exercisable for a period of eighteen (18) months from the earlier of: (i) the
date of the receipt for the final prospectus and (ii) 12 months following the
Closing Date.
SAMSys in partnership with International Paper is seeking opportunities
to deploy smart packaging RFID technologies to enhance data flow within
operations of Fortune 500 organizations. Its value-added proposition is to
decrease almost $70 billion of waste from inventory irregularities, excessive
labor costs and theft in the retail supply chain.
RFID is an electronic labeling system that uses radio frequency to count
closely spaced items without the need to separate and scan individual items.
RFID consists of a tag and a reader. The reader transmits a signal to the tag,
which is a small transceiver. The tag transmits encoded data back to the
reader, which logs it via computer. The tag has read-write capabilities,
enabling its data to be modified remotely. The system provides greater
flexibility over bar-code inventory-control systems because there are no line
of sight requirements and physical contact or operator intervention is not
required. |
