Metiscan closes equity funding of $7.3M

Aug 28 2009

Metiscan, Inc. (PINKSHEETS: MTIZ), a holding company focused on growing its organization by making key acquisitions and developing companies and emerging technologies, announced today that it has closed an equity funding of $7.3M, which has been deposited in a restricted cash account owned by Metiscan. Funds shall be distributed subject to a registration statement filed with the SEC becoming effective and other conditions outlined in an account management agreement. The investors also have the option to exercise warrants up to $10M.

The Regulation D 506 offering closed on August 26, 2009, with the sale of 500 units comprised of 500,000 shares of the Series D Preferred Stock and 542,878,037 Warrants in consideration for $7,273,823.20. The 500,000 shares of the Series D Preferred Stock are convertible into 584,101,332 shares of the Company's common stock. The average price was $0.0125 per share. All monies received through the sale of the 500,000 shares of Series D Preferred Stock are subject to registration with the SEC or pursuant to compliance with SEC rules and other conditions as outlined in an account management agreement. All funds shall be distributed pursuant to an agreed upon use of proceeds. Metiscan management has agreed not to reverse split the common stock of the Company without the consent of all 5 private equity investors for a period of 48 months.

The investors have the option to exercise 542,878,037 Warrants which, if exercised, would result in an additional $10,156,920.70 in gross proceeds to the Company. The average exercise price for each Warrant is $0.0187 per share. The proceeds received from the exercise of the Warrants are not subject to an account management agreement or a pre-approved use of proceeds.

"The recent closing of this offering marks a large milestone for our organization," commented Bryan A. Scott, President and CEO of Metiscan, Inc. "We are working diligently to file a registration with the SEC such that Metiscan can become a fully reporting issuer. We look forward to using this capital to provide additional value to Metiscan's current subsidiaries through equipment purchases, product research and development, sales expansion, debt reduction and working capital. Furthermore, a portion of the investment proceeds are earmarked for the use of acquiring additional companies which the Board of Directors believes will add increased value to the organization on a consolidated basis."