Ikona Closes Private Placement for $900,000
New Financing Will Facilitate Company's Move to 18,000-Square-Foot Site
Ikona Gear International, Inc. "Ikona" (OTCBB: IKGI), an innovator in compact, lightweight, gearing systems solutions, announced today that it has closed a private placement agreement with a single individual for $900,000 (USD) in exchange for 1,800,000 units.
The proceeds from the private placement will be used to relocate Ikona headquarters and manufacturing to an 18,000-square-foot facility in Coquitlam, British Columbia, Canada. Ikona personnel will begin moving to the new space in the next 30 days. Any funds remaining from the move will be used as working capital and for general corporate purposes.
"We are delighted this placement has closed and the Company will now be able to consolidate its headquarters and all of its operations under one roof," said Laith Nosh, Ikona CEO and President. "Our backlog of orders for Ikona Oil and Gas Equipment customers required us to find a larger facility to accommodate inventory and streamline our product to market methods.
"The new location will ensure our ability to rapidly transition from technology development to product development to production manufacturing while maintaining our very high standards of quality control and customer satisfaction."
The private placement exchanges 900,000 (USD) for 1,800,000 units, each unit consisting of one common share and one half of one warrant that is exercisable at $0.60 for a period of one year. The private placement was exercised under Regulation 'S' of the Securities & Exchange Commission.
"The new facility will allow Ikona to operate at a higher production capacity with better inventory control," said Ikona's COO George Stefan. "With an increase in demand for Ikona products, our product development capabilities can now be expanded to include product testing and data collection that will ultimately result in an improved developmental cycle for our new applications and increase our speed and efficiency in delivering finished products to our customers," said Stefan.
About Ikona Gear International, Inc.
Ikona Gear is a knowledge-based company focused on the design and manufacture of innovative and patented solutions for gearing and power transmission applications, a $100 billion market. The Ikona gear system is better, stronger, more precise and generally superior to standard gearing systems. The Company's unique, patented technology is ideally suited for deep ratio, weight and size constrained applications where often it is the only solution. The Ikona gear technology is the only technology that enables internal gear-sets with only one tooth difference, resulting in a much higher meshing of gears, and significantly higher gear ratios -- very important factors, especially in plastic gearing solutions. Ikona trades on the Over the Counter market under the symbol "IKGI" and on the Frankfurt Exchange under the symbol "IG2." For more information on Ikona, please visit www.ikona.ca/.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
Source: Market Wire (September 21, 2006 - 10:54 AM EST)
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