TORONTO, April 22 /CNW/ -- ComnetiX(TM) Inc (TSX: CXI), a leading provider of biometric identification and authentication solutions, announced that it has reached an agreement with a syndicate of agents, led by Wellington West Capital Markets Inc. and McFarlane Gordon Inc., and including GMP Securities Ltd, (collectively the "Agents") in connection with a previously announced (April 11, 2005) private placement equity offering of approximately 1,900,000 units (each a "Unit") priced at $2.50 per Unit on a best efforts basis. Insiders may subscribe for up to 200,000 Units on the same terms as described above. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will have an exercise price of $3.25 and will be exercisable for a term of 1 year from the closing date. The Agents will be paid a commission of 7% of the gross proceeds of the offering for arm's length investors and 3.5% of the gross proceeds for sales to insiders. The proceeds of the offering will be used to fund growth, for working capital and for general corporate purposes. Completion of the private placement is subject to receipt of all required regulatory and other approvals, including the approval of the Toronto Stock Exchange. It is anticipated that the private placement will close on or about April 28, 2005. About ComnetiX(TM) Inc ComnetiX(TM) Inc provides secure identification and authentication solutions to both the public and private sectors throughout North America. ComnetiX offers multimode biometric identification solutions for use in areas such as applicant screening, financial services, health care, transportation, airlines and airports, casinos and gaming, and energy and utilities. Clients include American Airlines, Lehman Brothers, New York City Health and Hospital Corporation, New York State Division of Criminal Justice Services, Toronto Police Services Board, Boston Police Department and the Royal Canadian Mounted Police. ComnetiX is also Canada's premier applicant fingerprinting services company, facilitating tens of thousands of criminal background checks each year through its chain of ten offices across Canada. In addition, ComnetiX has recently launched its first applicant fingerprinting services office in the U.S., located in Sacramento, California. The securities being offered have not, nor will be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States. Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes," "plans," "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. For further information Investor Relations: Jesse Deal 1-877-691-8087 (toll-free) investor.relations@ComnetiX.com Tim Zahavich ComnetiX Inc 905-829-9988 ext 206 investor.relations@ComnetiX.com
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