LAS VEGAS, April 4, 2007 (PRIME NEWSWIRE) -- ASI Technology Corporation (OTCBB:ASIT) reported today that it has completed a $4 million equity financing through the sale of common stock. The Company intends to use the proceeds primarily to expand the specialty lending activities of ASI Capital Corporation, a wholly-owned subsidiary licensed as both a mortgage broker and mortgage banker in Nevada.
The Company's lending activities are diverse focusing on opportunities identified by its experienced executive team. The Company has made homebuilder bridge loans, residential and commercial real estate loans and a collateralized venture capital loan. Its primary focus is short-term, one year or less. The Company is also engaged through its principals in performing loan brokerage and related fee activities. At March 31, 2007 the Company had loans aggregating $2.9 million outstanding.
The $4 million private placement of common shares was priced at $0.45 per share. The Company's directors and executive officers purchased $1.86 million of the financing. The Company now has 15.9 million common shares outstanding, with approximately 43% held by directors and executive officers.
Jerry E. Polis, ASI Chairman and President stated, "This placement increases our loan capacity to over $6 million and should allow us to be profitable in future quarters based on our existing loan portfolio and planned activities. We see a large number of profitable lending opportunities in the Southwest and plan to grow our lending capacity and loan portfolio in the future."
This announcement does not constitute an offer to sell or a solicitation of an offer to buy shares of the Company's common stock. The shares sold to the investors have not been registered under the Securities Act of 1933 or applicable state securities laws and are expected to be restricted from resale for at least one year. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
About ASI Technology Corporation -- ASI is a specialty finance and investment company that provides specialty finance loans and invests in new technologies.
The ASI Technology Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3174
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This document contains forward-looking statements relating to future performance and technology development that may affect future results of the company. Actual results could be affected or differ materially from those projected in the forward-looking statements as a result of risks and uncertainties, loan and development results, competition, general economic factors, and other factors identified and discussed in the Company's most recent filings with the Securities and Exchange Commission. The Company's loans and investments are subject to many risks including default and nonpayment. Failure to collect on loans or investments could have an adverse effect on the Company's operations. These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from the Company's current expectations.