Shift Announces Closing of $5.2 Million Equity Financing
Calgary, Canada, June 14, 2006 – Shift Networks Inc. (TSX-V:SHF), announced today that the Corporation closed a brokered private placement (“Private Placement”) of units (“Units”), subject to regulatory approval, which raised $5,200,000, an increase from the $5,000,000 previously announced. The Corporation issued 34,666,667 Units at $0.15 per Unit. Each Unit consisted of one common share and one-half of one common share purchase warrant. Each common share purchase warrant is exercisable into one common share at a price of $0.18 until June 14, 2008.
Loewen, Ondaatje, McCutcheon Limited acted as lead agent for this Private Placement, and received a cash commission and Agent’s Warrants. Each Agent’s Warrant is exercisable until June 14, 2006 into one Unit at a price of $0.15 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant exercisable into one common share at a price of $0.18 until June 14, 2008.
The Units issued pursuant to the private placement are subject to a four month hold period. Shift intends to use the proceeds of the Private Placement as follows:
- accelerate expansion into Eastern Canada, specifically Toronto, and continue to fund growth in Calgary, Edmonton and Vancouver;
- deploy new network technology to increase margins, features and services; and
- reduce demand barriers with lower priced telephone handsets bundled with monthly service.
Shift Networks is the leader in next generation Voice over IP services for small to medium-sized businesses. Shift Networks trades on the TSX Venture Exchange under the symbol "SHF". Please visit our website at www.shiftnetworks.com.
For information please contact:
Press & Media Shift Networks Inc.
Christian Darbyshire Trent Johnsen
(416) 419-9953 President and CEO
email@example.com (403) 355-2703
The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release.