Redcity Search negotiates private placement for up to C$8 million

By Sheri Kasprzak

New York, Nov. 10 - Redcity Search Co. Inc. said it plans to raise up to C$8 million in a private placement of equity securities.

The exact type of securities offered and the offering price have not yet been determined.

TD Securities Inc. will be the placement agent for the deal, which is slated to close in December.

Proceeds will be used for growth, working capital, debt settlement and other general corporate purposes.

Separately, Redcity said the refinancing of its debt to ABM Investments Ltd. and Gould Leasing Ltd. has been completed. The maximum principal of a bridge loan provided by ABM has been reduced to C$600,000 and the annual interest rate was increased to 18%. The loan matures on July 31, 2006.

The bridge loan provided by Gould has been limited to C$959,943 and matures on July 31, 2006.

Toronto-based Redcity develops online search technologies.

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