| New Release -- Superconductor Week does not edit or endorse the following news release: VSM MedTech reports on Special Meeting of Shareholders
Vancouver, British Columbia, August 4: VSM MedTech Ltd. (TSX:VSM) today announced the results of the Special Meeting of Shareholders held on August 3, 2006. The special meeting was held to allow shareholders to vote on two resolutions related to a proposed $20 million transaction with Mass Financial Corp., an international merchant bank with diverse global business relationships.
Shareholders approved the first resolution supporting the issuance of securities in connection with the proposed financing transactions with Mass Financial. The proposed transaction included a $5 million private placement of units consisting of common shares and warrants, and a $15 million revolving line of credit that would also be convertible in units. This financing will provide the stability required by VSM to meet all outstanding obligations and additional capital required for further product developments.
A special resolution to amend the Company's articles to create Class A non-voting common shares was narrowly defeated. A majority of VSM's shareholders voted to approve this amendment, but fewer than the required two-thirds of votes were cast in favor of the special resolution. However, Mass Financial has advised VSM that it will work together with the Company to find an acceptable alternative to the original proposal for convertible debt extended under the revolving line of credit.
No other business came before the meeting.
Second Quarter Financial Results
VSM MedTech Ltd. will report its financial results via news release shortly after the market closes on Thursday, August 10, 2006. No conference call is planned following the release.
For more information, please contact:
Paul Murdoch, President and Chief Executive Officer, VSM MedTech Ltd.
Tel: 604-472-2409; email: pmurdoch@vsmmedtech.com web: www.vsmmedtech.com
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