Sherwood Park, Alberta, November 15, 2013- Virtutone Networks Inc. ("Virtutone" or the "Corporation") (TSX Venture: VFX.V) is pleased to announce that it will be conducting a non-brokered private placement of up to 6,000,000 units ("Units") of the Corporation at a price of $0.25 per Unit, each Unit being comprised of: (i) one common share; and (ii) one half of one common share purchase warrants (the "Warrants"), for aggregate proceeds of up to $1,500,000 (the "Private Placement"), subject to the receipt of all applicable regulatory approvals. Each whole Warrant will entitle to holder to purchase one common share at an exercise price of $0.375 for a period of two years from the date of the closing of the Private Placement. The Private Placement is expected to close in one or more closings, beginning on or around November 22, 2012.
The Units issued pursuant to the Private Placement will be subject to a hold period of four months and one day from the closing date as well as other restrictions with respect to sales from control positions.
The proceeds of the Private Placement will be used for general working capital and corporate purposes.
For further information, please contact: Colin Campbell, Chief Financial Officer of Virtutone at (780) 702-5777.
This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the number of Units to be sold pursuant to the Private Placement, the use of proceeds from the Private Placement and the expected closing dates, if any. These forward-looking statements are based upon the opinions, expectations, estimates and assumptions of management as at the date the statements are made, including, without limitation, assumptions with respect to the receipt of regulatory approval for the Private Placement and general economic conditions in North America. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, risks that the Private Placement will not be completed or if completed not on the same terms as disclosed above and a failure to obtain necessary regulatory approvals. The statements in this news release are made as of the date of this release. We undertake no obligation to update such forward-looking information except as required by applicable securities laws.
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