January 5, 2000 - ZTEST CLOSES $3,770,000 PRIVATE PLACEMENT
ZTEST Electronics Inc., ZTST - CDN, ("ZTEST") wishes to announce that it has concluded negotiations with ten (10) arm’s-length institutional and individual investors resulting in private placements in the total amount of $3,770,000. The private placees subscribed for 1,508,000 Units (the "Units") of ZTEST on the basis of one (1) Unit for each $2.50 of funds advanced. The Units consist of one (1) common share of ZTEST and three-tenths (3/10ths) of a share purchase warrant with each full warrant entitling the holder to acquire one (1) additional common share of ZTEST at a price of $3.00 for the first year following closing, $3.50 for the second year following closing and $4.00 for the third year following closing. The placements closed on December 29, 1999. The consideration for the Units was the transfer of 1,830,000 Preferred Shares of Nexsys Commtech International Inc. ("Nexsys") valued at $1,500,000, the assignment of $1,900,000 of debentures issued by Nexsys, bearing interest at the rate of 6% per year calculated semi-annually and not in advance and coming due on either March 3, or May 28, 2003 and $370,000 in cash.
The cash portion of the proceeds will be used for working capital purposes and potential acquisitions.
ZTEST currently holds 5,445,314 common shares of Nexsys and 1,830,000 voting preferred shares of Nexsys representing 44.42% of the voting securities of Nexsys. ZTEST also holds warrants to acquire an additional 302,409 common shares of Nessys.
ZTEST offers Strategic Partner services in electronic design, development and manufacturing to emerging high tech companies in return for long-term manufacturing contracts, fees for services and equity positions.
For further information, please contact Mr. James E. Lalonde, Manager, Corporate Development, at (905) 569-3344 or visit our website at http://www.ztest.com .
The current outstanding capital of ZTEST is 18,199,816 common shares.