RICHMOND, B.C., Aug. 15, 2002 (PRIMEZONE) -- Pyng Technologies Corp. (OTCBB:PYNGF) (TSX Venture Exchange:PYT) makes the following announcement:
The company indicated in its Annual Report that it intended to raise at least $750,000 to $1,000,000 to advance the F.A.S.T.1 System in the market place during fiscal 2002.
In April/May Pyng Technologies Corp. did raise $380,000 through a Private Placement. As part of the announced capital requirements Pyng Medical Corp., a wholly owned subsidiary, also anticipated receiving approximately $360,000 in fiscal 2002 from a Canadian Research and Development tax rebate. We have however just been informed by KPMG, our agents, that due to a CCRA policy change, we will not be receiving this in the immediate future. As a result of this more capital is now required in order to meet our current obligations, sales projections, and profitability.
Sales of the F.A.S.T.1 System from the beginning of the fiscal year to-date have been $503,000 and while the preceding sales have met projections, increased capital spending on marketing and sales will be required to meet the projections for the balance of this year. The company has, and continues, to embark on strong cost cutting measures, including major wage reductions for management, and staff reductions where necessary, in order to bring its costs of operations in line with its sales revenue.
Pyng Medical Corp. is now actively seeking a strategic partner, new capital, and or a combination to continue with the advancement of the F.A.S.T.1 System into the pre-hospital, hospital, and military markets and to reach profitability in the near future. Pyng Medical Corp. will be specifically seeking a strategic partnership that offers extensive expertise in International marketing, sales, and distribution in the emergency medical products market place.
Michael W. Jacobs, President.
For further information please contact Pyng Technologies Corp. at 1-800-349-7964 or 1-604-303-7964, or visit our web site at www.pyng.com.
The Toronto Venture Exchange has neither reviewed nor approved of the contents of this news release. Safe Harbor Statement: This release may contain certain forward-looking statements including without limitation, projections, assumptions, expectations, product development objectives, commercial introduction, and potential advantages of the F.A.S.T.1 System. Actual events or results may differ from the Company's expectations as a result of risk factors discussed in Pyng Technologies Corp. reports on the file with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's report on Form 20F for the year ended September 30, 2001.