OCTOBER 27--Braintech (Vancouver, BC, Canada; www.braintech.com), a provider of vision-guided robotic software, has redeemed all of its outstanding US$2.45 million Secured Convertible Debentures. The company utilized a financing from the Royal Bank of Canada guaranteed by a group of mainly existing Virginia-based shareholders. For detailed information on the transaction read the 8-K Report filed with the SEC and available via the internet through EDGAR.
Owen Jones, CEO of Braintech, commented, "We were very fortunate in 2003 to receive funding through a Secured Convertible Debenture. The Debenture funding allowed us to grow and move the business forward as we realized our goal of developing our relationship and strategically partnering with global industrial giant ABB. The company now moves to another level as we have paid off the Debenture Holders."
"The Virginia Investment Group realized the importance of retiring the Debentures," Jones continued. Its involvement and the resulting secured investment vehicle are highly advantageous for Braintech. As a result of this transaction we have effectively reduced the total number of outstanding common shares by approximately 4,800,000 and have increased the potential amount of investment via exercise of warrants by approximately $2,900,000.
"Equally as important, these business investors are strategically networked and will support our efforts to develop our US Federal Government robotics business."
Rick Weidinger, managing member of the Virginia Investment Group said, "This financing definitely takes Braintech to the next level. We support the company's business model and are pleased to partner with the Royal Bank of Canada on this financing. The company is now well positioned as it has executed a strategic agreement and revenue guarantee with ABB, has improved its capitalization with this transaction, and can now focus intensely on the growth of its existing high margin business, as well as the implementation of new business in the other emerging robotics sectors."
