MONTREAL, Sept. 7 /PRNewswire-FirstCall/ -- Nstein Technologies Inc. (TSX-V: EIN), a leader in content management solutions for the publishing, media and entertainment industries, today announced that Gesca Digital Investments Ltd, a subsidiary of Gesca Ltd, has the firm intention of making a $2-million private placement in the Company.
In exchange for the placement, Nstein will be issuing units priced at $0.85. Each unit will consist of one common share, one-half of one A-tranche share purchase warrant and one-half of one B-tranche share purchase warrant. One whole A-tranche share purchase warrant will entitle its holder to purchase one additional common share of Nstein's share capital at a price of $1.50. One whole B-tranche share purchase warrant will entitle its holder to purchase one additional common share of Nstein's share capital at a price of $2.00. These share purchase warrants will be valid for three years from the date of issue.
The total amount of the transaction may exceed $2 million, with an additional investment from the Company's employees and other investors over and above that of Gesca Digital Investments Ltd. Certain Insiders of the Company have committed to acquire 366,647 of the units. The combined amount will be capped at $3 million. The proceeds of these investments are to be used to ramp up Nstein's marketing efforts within the North American and European e-publishing markets.
The transaction is expected to close within 15 days and is subject to customary closing conditions for this type of investment as well as the approval of regulatory authorities.
The price was determined following arm's-length negotiations between the Company and Gesca Digital Investments Ltd. It represents a premium of 19.7% over the market closing price on July 11, 2007, the day before the Company initially applied for price protection with the TSX Venture Exchange.
"We are very proud that Gesca Digital Investments is interested in promoting Nstein's development. Our two groups started working together a few years ago, when we incorporated some of our solutions into the sites belonging to Cyberpresse, the online news network run by the Gesca group," said Luc Filiatreault, President and CEO of Nstein Technologies Inc. "Our business relationship today is built on these solid foundations. This injection of capital will make it possible for us to ramp up our marketing efforts. The expertise and reputation of the Gesca team will undoubtedly be a tremendous asset as we continue to strengthen our position on the e-publishing market."
Marco Dodier, President of Gesca Digital Investments, added: "Nstein develops high-performance content management solutions specifically tailored to online media. We are delighted to help fuel their growth by allowing them to leverage our network of contacts and our experience as a client. This investment is in keeping with Gesca Digital Investments' overall strategy and mission to step up its presence in the digital market."
About Gesca Digital Investments Ltd
Gesca Digital Investments Ltd specializes in capital investments in new media enterprises and the incubation of digital ventures. It plays an active role in the development of the companies in which it invests. Gesca Digital Investments is a division of Gesca Ltd., a media group and a wholly owned subsidiary of Power Corporation of Canada (TSX: POW).
About Nstein Technologies Inc.
Nstein Technologies (TSX-V: EIN) develops and markets leading-edge content management software for the media, publishing and entertainment industries. Its Ntelligent Content Management Suite enables the centralization, enrichment and publication of textual and rich media assets using advanced text mining. Nstein helps publishers significantly increase their content monetization and reduce their operational costs through cross media publishing and multichannel delivery. Nstein is headquartered in Montreal, Canada, with offices in the USA and Europe. More information is available at http://www.nstein.com/.
- The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. - Any statement that appears prospective shall not be interpreted as such.
