Message #1 From:
Stock News Bot Date: April 2, 2007 06:39:00 AM
NTRN News Neutron Enterprises Completes $6.9 Million Private Placements
MONTREAL--(BUSINESS WIRE)--Neutron Enterprises Inc. ("Neutron") (OTCBB: NTRN) announced today that it has completed private placement transactions, under which it raised gross proceeds of $6.9 million. The Company raised $4.8 million through the issuance of common stock and warrants and an additional $2.1 million through the issuance of a secured convertible note. Proceeds from the financings have been used to complete the acquisition of Stock-Trak, Inc. ("Stock-Trak"), a leading provider of stock portfolio simulations for the educational and corporate markets, to develop a new fantasy stock-market competition, where contestants will have the opportunity to demonstrate their stock-picking skills by selecting and managing a portfolio of stocks and competing for significant cash prizes, for marketing surrounding the upcoming launch of the contest, and for general corporate purposes.
Between November 1, 2006 and March 2, 2007,the Company raised $4.8 million in a private offering of units consisting of 2.4 million shares of common stock and two-year warrants to purchase an additional 1,2 million shares of common stock at an exercise price of $2.50 per share. The units were offered and sold to a limited number of accredited investors residing outside the United States. In addition, on March 23, 2007 the Company issued an 8% secured convertible note in the principal amount of $2.1 million which is convertible into shares of common stock at $2.50 per share. The shares underlying these transactions have not been registered.
“We are pleased that we were able to complete the financings, providing the Company with the capital necessary to develop its fantasy stock market competition and to launch an aggressive marketing campaign to attract participants to the contest,” said Mr. Olson. “I believe the opportunity is substantial and look forward to the upcoming launch. I believe the attractive terms on which we were able to conclude these financings reflect the potential that Neutron has to build a leading advertising-supported destination site that offers not only an exciting, lucrative competition, but also the ability to develop a portal for investors of all experience levels.”
About Neutron:
Neutron Enterprises, Inc. is a developer of web-based, interactive consumer entertainment and business simulation products through its Web and Interactive and Media divisions.
Neutron Web and Interactive is currently in development of a community oriented, interactive, prize based multiplayer fantasy stock market portal. The portal, known as Wall Street Survivor, will be Neutron’s first consumer-based skill game, also featuring a robust social networking platform. Neutron believes it will be the first-to-market, real-time, online portal for fantasy stock market simulation in which players compete for significant cash and non-cash prizes based on their stock selecting prowess.
Neutron Media is a full service marketing firm that operates an advertising based network of outdoor multimedia LED display screens. Neutron Media leverages strategic partner relationships with organizers of high profiled events to offer advertisers branding opportunities via permanent or event driven installations.
Neutron Enterprises Inc. executive offices are headquartered in Montreal, Canada, with offices in Mississauga, Canada.
Important Information about Forward-Looking Statements: All statements in this news release other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial positions to differ materially from those included within the forward-looking statements. Such factors include, but are not limited to, the availability of capital resources, our ability to execute our business plan, our ability to attract and retain customers and qualified personnel, customer acceptance and satisfaction with our event marketing services and proposed stock market simulation contest, changes in applicable regulatory actions, changes in the securities or capital markets, statements of assumption underlying any of the foregoing, and other factors disclosed in our annual report on Form 10-K for the year ended December 31, 2006 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date hereof.
