Victoria, British Columbia, April 12, 2005 - Municipal Solutions Group, Inc. ("Municipal Solutions" or the "Company") (TSX Venture: MSZ), a provider of business process automation solutions for government, today announced the completion of the $900,000 second tranche of the $1,000,000 financing (the "Second Tranche") and $256,000 equity private placement (the "Private Placement") which were both previously announced on February 28, 2005. The investors participating in these transactions are Pender Growth Fund (VCC) Inc. and Pender Financial Group Corporation. The Company intends to use the proceeds from the Second Tranche for general working capital and execution of the 2005 business plan of the Company, while the proceeds of the Private Placement will be used to retire loans made to the Company by Robert Bennett and Troy Kusy, both founders of the Company.
The securities issued at the completion of these transactions are subject to a four month hold period that expires on August 13, 2005.
Iain McLean, Chief Executive Officer of Municipal Solutions, commented, "these funds are the catalyst that will allow Municipal to continue with our reshaping of the company over the balance of 2005. We will use these funds very carefully and selectively to take the company forward. We are working to broaden our client base and offer more to our existing customers."
"Municipal has an excellent new product set built on 23 years of experience with clients across North America," added McLean. "The solutions we offer help local governments deliver improved services and be more efficient. Our CityView product platform enables our clients to evolve their processes as they grow."
