Imaging Dynamics Company Ltd. Establishes Credit Facility and Closes Private Placement of Warrants
CALGARY, June 9, 2009 - Imaging Dynamics Company Ltd. ("IDC" or the "Corporation") (TSX: IDL) is pleased to announce the establishment of credit facility (the "Credit Facility") in the aggregate amount of $1,000,000 with a group of private investors (the "Lenders") effective on June 8, 2009 (the "Closing Date"). In connection with the establishment of the Credit Facility, the Corporation issued an aggregate of 9,166,664 common share purchase warrants (the "Warrants") to the Lenders. Each Warrant is exercisable into one common share at an exercise price of $0.12 (the "Exercise Price") subject to adjustment in certain events, at any time, on or before 4:30 p.m. (Calgary time) on June 8, 2012 (the "Expiry Date"). A total of 8,333,333 Warrants are placed in escrow and 8.333333 Warrants will be released from escrow to the Lenders for every $1.00 drawn by the Corporation from the Credit Facility. Any Warrants remaining in escrow after the Expiry Date shall be cancelled. As of the Closing Date, IDC has not drawn down from the Credit Facility.
Tom Boon, IDC's President and CEO, commenting on this announcement said, "At the recent annual general meeting of the shareholders of IDC, it was stated that IDC may require near term access to a moderate amount of working capital in order to sustain its business. I am pleased that we have been able to secure this $1 million credit facility from a group of existing investors which demonstrates their continued confidence in IDC's technology, channels and plans for near term profitable growth. With the newly restructured company and the anticipated recovery in the market for healthcare technology, these funds will give the company the ability to manage its obligations as we seek to achieve a cash flow neutral operation as IDC's revenues continue to grow."
This news release does not constitute an offer to sell, or the solicitation of an offer to buy, the securities in any jurisdiction, including the United States, or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption therefrom, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The securities being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person, absent U.S. registration or an applicable exemption therefrom.
About IDC:
IDC is a medical technology company and innovative force in the fast-growing field of digital radiography (DR) technology. IDC's X-Series line of direct capture technology replaces conventional film-based image capture and provides a cost-effective alternative to cassette based computed radiography (CR) systems.
Each IDC DR solution provides high resolution radiographic images in the digital format required for today's electronic medical record networks, all without the use of film, environmentally harmful chemicals, cassettes or expensive imaging plates. IDC received the 2007 Frost & Sullivan Technology Innovation Award and the 2008 PROFIT 100 ranking as one of Canada's fastest-growing companies. IDC was also recognized by the 2008 Deloitte Technology Fast 500, which ranks the fastest growing technology, media, telecommunications and life sciences companies in North America.
IDC is based in Calgary, Alberta, Canada.
You may also visit the IDC Web site: www.imagingdynamics.com
Statements in this release which describe IDC's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of IDC to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. IDC may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions. Known and unknown risks and uncertainties include: IDC's ability to manufacture its products with a sufficient level of quality and in volumes which satisfy market demand; the ability of IDC to establish direct and indirect sales channels; the ability of IDC to establish industry partnerships; IDC's ability to attract and retain key personnel; the strength and breadth of IDC's patents; and other factors relating to general economic conditions, specific industry conditions and IDC's particular situation.