VANCOUVER, December 16 /PRNewswire/ -- Sonic Environmental Solutions Inc. (SNV-TSX Venture Exchange) announced that the Company received a final receipt for its short form prospectus on December 14th, 2006 from each of the securities regulators in British Columbia, Alberta and Ontario. The short form prospectus qualifies the distribution of 6,670,000 common shares and 6,670,000 common share purchase warrants issuable upon the exercise of 6,670,000 SpecialWarrants issued pursuant to a previously announced private placement which closed on November 9, 2006.
In connection with the Special Warrant financing, the Company agreed to use its best efforts to file a prospectus qualifying the distribution of the common shares and common share purchase warrants as soon as practicable after the closing of the private placement. If a final receipt for Sonic's short from prospectus was not issued by December 15, 2006, the holders of the Special Warrants would have been entitled to receive 1.1 common shares and 1.1 common share purchase warrants on exercise of each Special Warrant. Since the final receipt for the prospectus was received ahead of the December 15th deadline, the holders of Special Warrants are not entitled to receive the additional shares or warrants.
In addition, the Company has received disinterested shareholder approval by written consent resolution, and permission from the TSX Venture Exchange, for the exercise of the Special Warrants by one of the participants of the special warrant financing, which will increase the holdings of that participant to greater than 20% of the issued and outstanding common shares of the Company upon exercise of the Special Warrants. Accordingly, $1,271,955.94 of the funds raised in the financing has been released from escrow to the Company and $103,131.56 has been released from escrow and paid to Salman Partners Inc. and Pacific International Securities Inc. (representing that portion of the agents' commission in respect of the escrowed funds).
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
