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Kelman Technologies Inc. - Closes refinancing of preferred shares and secures short-term financing

^{Published on 2009-06-30 15:34:08, Last Modified on 2009-06-30 15:34:51 - Market Wire}
 

 CALGARY, June 30 /CNW/ - Kelman Technologies Inc. (TSXV: KTI) announced today that it closed its previously announced refinancing agreement with Epstein Enterprises Inc. ("EEI"), a corporation controlled by Mr. Seymour Epstein, Chairman of the Corporation, whereby EEI subscribed for a 12.25% secured non-convertible debenture in the principal amount of $4,230,696 and 42,306,960 common share purchase warrants for a cash payment of $4,230,696 that was used to purchase 6,861,392 Series B Senior Preferred Shares and 2,666,666 Series C Senior Preferred Shares of the Corporation owned by Seyco Operations Limited, a company controlled by Mr. Epstein, for cancellation. The Corporation also closed its previously announced refinancing agreement with Mr. Victor Peters, a director of the Corporation, whereby Mr. Peters subscribed for a 12.25% secured non-convertible debenture in the principal amount of $201,462 and 2,014,620 common share purchase warrants for consideration of a cash payment of $201,462 that was used to purchase 402,923 Series B Senior Preferred Shares of the Corporation owned by Mr. Peters for cancellation. In addition, the Corporation announced today that it has secured short-term financing in the amount of CDN$500,000 from EEI, which is evidenced through a promissory note due 90 days from the date of issuance or on such earlier date as requested by EEI. The promissory note will bear interest at the Prime Rate of the Royal Bank of Canada in effect from time to time plus ten (10%) percent. Kelman Technologies Inc. is a publicly traded Canadian company listed on the TSX Venture Exchange under the trading symbol "KTI". With offices in Calgary and Toronto, Canada, Denver, Houston, and Oklahoma City, United States, London, United Kingdom and Tripoli, Libya KTI services oil and gas exploration companies with a full suite of seismic processing and on-line data management and data archival services. To the extent this press release includes forecasts or forward looking statements about future performance of the company such forecasts or statements are believed to be reasonable by the company but are based upon assumptions in respect of commodity pricing and oil and gas exploration activity levels over the next couple of years. The risks associated with future events are mitigated where possible by Kelman but are uncontrollable and no guarantee of the accuracy of the forecasts or future financial performance of the company is offered. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

For further information: please visit our web site at [ http://www.kelman.com ] or contact Mr. Rene VandenBrand, President and CEO at (281) 293-0537, or by email to [ rene@kelman.com ]