Calgary, Alberta – June 14, 2005 – Ivrnet Inc. announces that it has agreed to issue an aggregate of up to $425,000 of Units at $0.10 per Unit in a private placement. Each Unit consists of one Common Share of Ivrnet and 0.5 of a common share purchase Warrant exercisable into Common Shares at a price of $0.15 per share for 18 months from the date of closing. 100% of the offering will be subscribed by insiders and employees. Of the proceeds $213,000 will be used to retire debt to related insiders, and the balance will provide additional working capital. A fee of $500 + 0.5% of the final subscribed amount will be paid to the TSX upon completion of the offering.
The additional working capital will allow Ivrnet to complete the roll out of Call Trak, a joint venture product with PBS Systems Inc. The Ivrnet/PBS partnership, previously announced in June of 2005, has achieved tremendous success, securing over 60 of a targeted 400 automotive clients in three months of initial pilot deployment. The recurring revenue from contracts is already equivalent to approximately 15% of existing monthly Ivrnet revenue.
The Offering is scheduled to close on or about April 10, 2006 and is conditional upon receiving regulatory approval, including the approval of the TSX Venture Exchange and completion of any definitive documentation.
Ivrnet is also pleased to announce that Robert Blackshaw will assume the roll of Chairman of the Board of Directors. Mr. Blackshaw, a long time member of the board and senior executive with the company, will continue to serve as a consultant and mentor to the management team. David Snell, company President, will assume responsibility for all day to day operations. Ivrnet’s previous Chairman, Rich Thompson, will continue as a director and member of the Audit and Compensation Committees. In addition to Mr. Thompson and Mr. Blackshaw, the Ivrnet Board includes Wayne Webb, President of Resco Communications, Ivrnet’s channel partner in the golf industry; Mr. Dave Bradley, President of PBS Systems, Ivrnet’s channel partner in the automotive industry; Mr. David Snell, President of Ivrnet, and Mr. Art Monk, Managing Director of Meridian Executive Partners, a venture advisory firm based in California.
Ivrnet’s Board of Directors has also approved the granting in aggregate of 550,000 options of Ivrnet to its officers, directors and management of the Corporation at an exercise price of $0.10 per share for a five year term with certain vesting provisions, subject to regulatory approval from the TSX Venture Exchange. The granting of options follows the expiry of 295,000 previously issued options.
About Ivrnet Inc. – Ivrnet is a technology company offering hosted telephone and business solutions comprising the integration of telephone and Web technologies. Ivrnet offers these integrated solutions to a variety of markets including Golf, Medical and Automotive industries. Ivrnet also offers a number of telephony products including Unified Messaging services, Virtual Telephone Switches, Hosted Call Centers, and Conference Calling.