Victoria, British Columbia, April 1st, 2005. Municipal Solutions Group, Inc. ("Municipal" or the "Company") (TSX-V: MSM), a provider of business process automation solutions for government, announced today that at an Extraordinary General Meeting ("EGM") held at the Company's offices in Victoria, shareholders voted to accept the terms of the $900,000 second tranche (the "Second Tranche") of a two stage $1,000,000 financing originally announced on December 22, 2004. The Second Tranche is also part of an overall revised financing package (the "Financing") previously announced on February 28th which includes a bridge financing totaling $250,000 and a $256,000 equity private placement. The investors participating in these transactions are Pender Growth Fund (VCC) Inc., Iain McLean, who is the Chief Executive Officer of Municipal, and Pender Financial Group Corp. (TSX-V: PDF).
In addition to the Second Tranche, shareholders also approved an 8:1 share consolidation, the re-pricing of options previously granted to directors and officers of the Company and a stock option plan. The approval of these matters by the Company's shareholders at the EGM clears the way for the Company to fulfill the remainder of the conditions of the Financing and work towards completion as soon as is reasonably possible.
"The acceptance of the terms of this financing is a very important vote of confidence from our shareholders," said Mel Couvelier, Chairman of the Board of Municipal. "Our new CEO, Iain McLean has begun a major repositioning of the company and is addressing the issues that have caused us some challenges over the past year and a half".
"The financing gives us the opportunity to move forward with our plans and will help us bring our products to market," added McLean. "This is a team effort with investors, employees, suppliers and our clients being supportive and committed to the solutions we offer. Municipal has over 140 clients and 23 years of experience in local government business process automation".
