Cenit Completes Second Tranche of Private Placement
May 16 2008 - 12:27PM
Marketwired
TORONTO, ONTARIO (TSX VENTURE: CNT) is pleased to announce,
further to its press releases of March 13, 2008 and April 18, 2008,
that it has completed the second tranche of a private placement of
$110,000 principal amount of secured convertible debentures. To
date, the Company has raised a total of $300,000. $150,000 of the
proceeds was used to redeem a previously issued convertible
debenture and the remainder will be used for working capital
purposes. The Company is continuing to raise funds in connection
with the private placement.
The principal amount of the debentures is up to $500,000 bearing
interest at 8% per annum and maturing 24 months after the date of
issuance. The principal amount of the debentures is convertible at
a conversion price of $0.15 per common share of the Company. The
debentures, and shares issued upon conversion of the debentures,
are subject to a four month hold from the date of issuance of the
debentures.
A finder's fee of 200,000 compensation warrants exercisable for
a period of two years from the date of issuance at a price of $0.12
per share have been issued to Regenesis Capital Management Inc. in
connection with the private placement.
Cenit also advises that it has signed a non-binding Letter of
Intent to sell the Point of Sale business, operating as Continental
Asset Management Inc., to Transax Technologies Inc. of Quebec. The
transaction is subject to the requisite due diligence and closing
is targeted for May 31, 2008.
About Cenit Corp.
Cenit Corporation is a Canadian holding company which operates
subsidiaries in diverse market niches: Blue Port Technologies Inc.
(BP), Continental Asset Management Inc. (CAM), and Health
Promotions Strategies Inc. (HPSI). BP is a software development
company coupled with a recruiting services business, CAM is a
vendor of Point of Sale systems and HPSI was a registered gaming
supplier but did not renew its license in early 2008 due to the
fact that it sold its customer list but it continues to receive a
residual income stream. Cenit is continually looking for strategic
investment alternatives to enhance shareholder value.
Shares Outstanding (Non-Diluted): 23,876,327
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
Website: www.cenitcorp.com
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