Cenit Corporation Announces Closing of $90,000 Private Placement
01 June 2010 - 9:42AM
Marketwired
Cenit Corporation ("Cenit" or the "Company) (TSX VENTURE: CNT), is
pleased to announce that it has closed its previously announced
non-brokered private placement for gross proceeds of $90,000.
"With this financing in place we are in a better position to
embark upon a new path for Cenit," commented Birks Bovaird,
President and CEO of Cenit. "Looking forward, our near-term focus
will be on the completion of the conversion of the debenture debt
thereby simplifying the balance sheet as well as identifying
acquisition targets which will set the new direction of Cenit and
bring long-term value to our shareholders. The company is currently
assessing opportunities and I look forward to updating the market
on our progress very soon."
The private placement consisted of 900,000 Units at $0.10 per
Unit. Each Unit consists of one common share and one common share
purchase warrant. Each warrant shall entitle the holder to acquire
one common share for $0.15 for a period of two years (the "Warrant
Term") from the closing of the transaction (the "Closing Date"),
provided, however, that should the closing price at which the
common shares trade, equal or exceed $0.25 for 15 consecutive
trading days following the date that is four months and one day
after the Closing Date, Cenit may accelerate the Warrant Term to
the date which is 30 days following the date a press release is
issued by Cenit announcing the reduced Warrant Term.
The securities issued pursuant to the private placement will be
subject to trade restrictions expiring on October 1, 2010 pursuant
to applicable securities laws. Compensation to the finders
consisted of a cash commission of $4,200 and 42,000 finder
warrants, each whole finder warrant entitling the holder to acquire
one additional Unit (a "Finder Unit") for a period of two years
from closing at $0.10 per Finder's Unit. Each Finder's Unit will
consist of one common share of the Company and one Warrant, with
each Warrant entitling the holder to purchase one additional common
share of the Company for a period of two years from the date of
closing at a price of $0.15 per underlying share, subject to
acceleration.
Net proceeds of the financing will be used for general working
capital purposes and to create balance sheet liquidity so as to
better position Cenit to make an acquisition when the opportunity
is identified.
The Company will now proceed to complete its previously
announced arrangement with its debenture and note holders to
restructure obligations aggregating approximately $407,000,
including interest of $5,874.
The debt restructuring is subject to regulatory approval and
closing. All securities issued in conjunction with the debt
restructuring will be subject to a hold period, which expires four
months after closing.
Consistent with its previously stated intentions, the Company
continues to seek out acquisition opportunities that are
financially prudent and accretive. Several opportunities are under
consideration at the present time and Cenit is optimistic that it
will soon be in a position to announce a transaction that will
materially enhance shareholder value.
About Cenit Corp.
Cenit Corporation is a Canadian holding company, continually
looking for strategic investment alternatives to enhance
shareholder value. Cenit presently operates subsidiaries in diverse
market niches: Blue Port Technologies Inc. (BP) and Health
Promotions Strategies Inc. (HPSI). BP has a division Techwork which
provides recruiting placement services. The other business, HPSI,
was a registered gaming supplier but did not renew its license in
early 2008 due to the fact that Cenit sold the customer list. HPSI
continues to receive a residual income stream.
Shares Outstanding (Non-Diluted): 24,776,327
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news
release.
Contacts: Cenit Corporation Birks Bovaird CEO (416) 214-9152
www.cenitcorp.com
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