LABRADOR TECHNOLOGIES INC. ANNOUNCES SECOND ROUND OF PRIVATE PLACEMENT FINANCING
January 24th, 2006
Labrador Technologies Inc. (“LTI” or “Labrador” - TSX Venture: LTX) is pleased to announce a second round of private placement financing (the “Private Placement”) for between 2,000,000 and 4,000,000 units of Labrador (“Units”), at a price of $0.10 per Unit, for proceeds of up to $400,000 to LTI. Like last year’s oversubscribed private placement, the minimum commitment of $50,000 for this financing has already been met. The minimum investment requirement, per qualified individual, is $10,000 (100,000 Units), and the closing date (the “Closing Date”) will be on or before February 28th 2006. Each Unit will consist of one (1) common share (“Common Share”) of LTI, and one-half (1/2) share purchase warrant (“Warrant”), with each whole Warrant exercisable at a price of $0.20 per Common Share, for a period of 12 months following the Closing Date.
Having had the benefit of highly encouraging market feedback since October 1st, on the unique positioning of LTI’s new product, Labrador eTriever, the Company decided to make some significant changes. LTI moved ahead its incorporation of Microsoft’s remarkable Virtual Earth mapping capabilities into eTriever’s initial January 2006 release. LTI has also decided on dramatically reduced eTriever pricing for its “introductory offer period”, and will be employing a much more ambitious, volume-based marketing strategy, using various media. And, LTI will be using a digital “Click Wrap” license agreement to facilitate and accelerate the process of allowing LTI’s distributors and clients ready access to the eTriever software service. As the geoLOGIC Data Center (gDC) was the first to approach LTI about eTriever, LTI will be doing its first formal market launch with potential clients at gDC’s premises in early February, 2006. eTriever’s introductory pricing, and its contractual process, will be so attractive that willing clients will, literally, be able to sign up for eTriever “on the spot”, and then negotiate with their Data Center for their data requirements.
Clearly, the foregoing represents additional expenses for the Company, as LTI concluded that eTriever’s uniqueness deserves a very aggressive marketing approach in order to capture immediate market-share. Thus, this Private Placement, together with eTriever’s forecasted revenue stream, allows LTI to have sufficient funds to operate, as a going concern, throughout fiscal 2006. Further, the Company’s efforts to consummate both Labrador and U.S./International Petro-LAB distribution agreements continue, and the financial prospects of the Company could change dramatically. Accordingly, LTI reserves the right to close the Private Placement, without notice, should revenue from any of these discussions be realized, such that LTI’s improved financial position deems it unnecessary to complete a fully exercised Private Placement.
The Private Placement is subject to regulatory approval, and LTI is required to file a formal application with the TSX Venture Exchange Inc. to maintain this price reservation.
About Labrador
Labrador Technologies Inc. is in its 26th year of creating Labrador “connections” between the data stores that companies invest in, and the destinations which they choose for their data. LTI develops data retrieval, reporting and analysis software, specializing in Data-Flow Management™ solutions, currently for the oil and gas industry.
Whether delivering data to a Labrador® application, a third party application, an enterprise service bus, or a portal, Labrador has the ability to retrieve and deliver data to the right place, at the right time. Labrador’s DFM™ software and services help software vendors, data vendors, and company developers alike deliver data to their target audiences by “plugging” users in, and minimizing the need for costly, ongoing maintenance and intervention.
Labrador (www.labradortechnologies.com) trades on the TSX Venture under the symbol “LTX.”
For further information, please contact:
Bill Rafih,
Director, Corporate Communications
Labrador Technologies Inc.
Telephone: (403) 263-6325
The TSX Venture Exchange Inc. does not accept responsibility for the adequacy and accuracy of this release.