CALGARY, Alberta, Oct. 12 /PRNewswire-FirstCall/ -- Securac Corp. ("Securac," or the "Company") (OTC:SECU) (BULLETIN BOARD: SECU) an enterprise governance, risk assessment and compliance software and services vendor, with clients including Coca Cola, Teekay Shipping, and Research in Motion, today announced today it has raised $2,600,000 in gross proceeds from the issuance of convertible notes and warrants to a limited number of accredited investors. The closing of the financing occurred on October 5, 2006, and the Company will use the net proceeds to repay certain debts and for general corporate purposes. "This investment provides us additional capital resources to improve our balance sheet and execute our strategic business plan that is focused on accelerating growth and corporate development in the North American governance, risk, and compliance ("GRC") market," stated Terry Allen, chief executive officer of Securac. "It is clear to us that the results of the last several quarters have proven we are improving corporate performance from our acquisition strategy and increased commercialization activities. Our revenues for the first six months of 2006 have nearly exceeded 2005 annual revenue, and the proceeds of this investment will allow us to invest in more sales and marketing initiatives to fuel our continued growth momentum." The notes were issued in the aggregate principal amount of $2.6 million, bear interest at 10% per annum and are scheduled to mature in two years. Principal and interest is payable at maturity. The notes are convertible into common stock at a 25% discount to market. We have the right to redeem the notes prior to maturity at a 30% redemption premium. The notes are secured by substantially all of the assets of the Company and its subsidiaries. As additional consideration, Securac issued to the holders of the Notes Class A Warrants to purchase up to 22,158,021 shares of common stock at $0.07 per share and Class B Warrants to purchase a like number of shares of common stock at $0.08 per share. The Class A Warrants expire five years from the closing date and the Class B Warrants expire five years from the date on which the underlying shares are registered for resale. The securities issued and underlying the securities in the offering have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state. The Company intends to file today a Current Report on Form 8-K with the SEC containing a more complete description of the financing and the terms of the securities sold in the financing. About Securac Securac is a vendor of corporate governance, risk assessment and compliance management software and services to corporate and public enterprises, consultants and regulated organizations. Acertus(TM), our integrated software platform for risk management and decision support, along with our professional services team of risk/governance experts and compliance specialists provide comprehensive governance, risk assessment and compliance programs from the boardroom to the operational level. Securac's principal office is located in Calgary, Alberta and it maintains a sales presence throughout North America. Statements in this Press Release that are not statements of historical fact, including statements regarding potential market size, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risk and uncertainties which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include but are not limited to changing market conditions, the successful and timely completion of financing, the establishment of corporate alliances, the impact of competitive products and pricing, new product development and uncertainties related to the regulatory environment. Reference is made to the Company's Annual Report on Form 10-KSB for the year ended December 31, 2005 for a description of these, as well as other, risks and uncertainties. Contact: Terry W. Allen Chief Executive Officer Securac Corp. Tel: 403-225-0403 DATASOURCE: Securac Corp. CONTACT: Terry W. Allen, Chief Executive Officer of Securac Corp., +1-403-225-0403,

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