Proceeds fund NEXTMap Germany initiative and strengthen working capital
Denver, Colorado (March 20, 2006): Intermap Technologies Corp. (IMP:TSX) announced today that warrants and agent options issued as part of a 2004 private placement have been exercised - resulting in the issuance of approximately 2.2 million Class A common shares of the Corporation and the receipt of proceeds of approximately C$12.5 million. Of the 2.2 million Class A common shares issued, approximately 0.3 million common shares (C$1.5 million) were issued during 2005 and the remaining 1.9 million common shares were issued during 2006 (C$11.0 million).
Under a private placement closed on March 11, 2004, the private placement resulted in the issuance of 4,444,700 Units. Each Unit had a purchase price of C$4.50 and consisted of one Class A common share and one-half (½) of a common share purchase warrant. Each full warrant entitled its holder to one Class A common share upon payment of an exercise price of C$5.85. The Company also issued an option to its agents, entitling them to purchase a total of 233,338 Units at a purchase price of C$4.50 per Unit. Each whole common share purchase warrant entitled the holder to acquire one common share, exercisable until March 11, 2006, at an exercise price of $5.85 per share. All warrants issued in connection with the private placement have now been either exercised or expired.
The cash proceeds increase the Company's working capital and provide funding for Intermap's 2006 initiative to map Germany under the NEXTMap Europe program. At December 31, 2005, Intermap's cash balance was US$63.5 million.
Intermap recently announced two joint development agreements within the German automotive industry for Intelligent Transportation Systems (ITS) applications. The agreements leverage Intermap's highly accurate geospatial databases in order to develop advanced 3-dimensional road data applications for automotive performance and safety improvements. These joint development relationships will give participating companies the opportunity to showcase the value of incorporating precise 3D road data into future automotive systems.
Market interest in Intermap's 3D map data has been increasing for ITS applications. Improving advanced car navigation and related applications continues to be a worldwide focus. Moving from today's coarse 2D data to accurate 3D information will provide the automotive industry with more accurate, visually aesthetic and effective automotive applications.
Following the issuance of the common shares associated with the exercised warrants, the Company has approximately 36.3 million common shares issued and outstanding.
Intermap is digitally remapping entire countries, building unprecedented national databases, called NEXTMap. NEXTMap consists of highly accurate digital elevation data, accurate color images and other derived products. Customers purchase Intermap's high-quality, low-cost data to facilitate better decision-making for numerous commercial, governmental, military and consumer applications.
Demand for NEXTMap data is growing as new commercial applications are emerging such as intelligent transportation systems, flood risk management, disaster mitigation, 3D visualization and Internet mapping. These new markets supplement growth in mainstream markets like geographical information systems (GIS), engineering planning, transportation, irrigation, environmental management, and telecommunications network planning. Internet applications in the future will include virtual tours, education, location based services and computer games. The products are also used to add 3D to and improve the accuracy of airborne and satellite images.
Headquartered in Denver, Colorado, Intermap employs more than 250 people worldwide, with offices in Calgary, Ottawa, Munich and Jakarta. Intermap is publicly traded on the TSX under the symbol IMP. For more information, visit www.intermap.com.