Ikona closes US$1.8 million private placement
VANCOUVER, May 3, 2004 -- Ikona Gear International, Inc. (IKGI:OTC) ("Ikona"), an innovator and developer of a proprietary patented gearing technology with numerous significant technological advantages, today announced it has closed a non-brokered private placement of US$1.8 million. The Company issued 2,438,361 units at US$0.75 per unit for gross proceeds to Ikona, before commissions and expenses, of US$1,828,771. This private placement was subscribed to by various existing shareholders and a number of high net worth private individuals.
Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole purchase warrant will entitle the holder to purchase one common share for a period of one year at a price of US$3.00 per share. The Company has agreed to complete and file a registration statement and to attempt on a best efforts basis to register the common shares and common share purchase warrants issued in this private placement.
"We are pleased with the financial commitment of our investors and with the over-subscribed closing of this round of financing. These funds will see us through our current operating cycle and will provide Ikona a reasonable position from which to expand through hiring new engineers and negotiating joint-development relationships for the coming year," said Raymond Polman, Ikona's CFO. "This capital enables Ikona to prudently fund Ikona's business strategy of leveraging powerful relationships with Tier One industrial partners such the ones it has established over the past year. Ikona intends to continue to innovate and deliver exciting joint development relationships, to grow its partner channel, target large industrial gear development opportunities and focus relentlessly on creating customer and shareholder value."
About Ikona Gear
Ikona Gear International, Inc. is a publicly traded company OTCBB:IKGI, incorporated in the United States, with head office facilities in Vancouver, Canada. Ikona's technology is based on a specific gear tooth form that allows high reduction and high tooth contact ratio with rolling, rather than sliding contact between gear teeth. The technology affords significant advantages: very high torque, low weight, zero backlash allowing accurate back-and-forth actuation; low wear and higher efficiency due to rolling contact, fewer moving parts, constant output speed and low noise.
For additional information see our web site at www.ikonagear.com, or, Contact: (all Contact information)
On Behalf of the Board Ikona Gear International, Inc. "Raymond L. Polman, CA" Raymond L. Polman, Chief Financial Officer Contact Person: Mr. Dal Brynelsen Telephone Number: (604) 685-5510 Fax Number: (604) 685-5970 Address: Suite 810, 609 Granville Street, Vancouver, BC, Canada, V7Y 1G5 Email Address: dbrynelsen@ikonagear.com Web site address: www.ikonagear.com
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. 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.