EXHIBIT 99.1
PRESS RELEASE Source: ZANN Corp.
ZANN CORP SECURES $5,000,000 COMMITMENT
FENTON, Michigan -- (BUSINESS WIRE) - December 9, 2005
ZANN Corp (OTC BB: ZNNC). Zann Corp (The "Company") announced today that it has
entered into a Standby Equity Distribution Agreement ("SEDA") with Cornell
Capital Partners, LP ("Cornell") whereby they have agreed to purchase $5 million
of Zann Corp common stock. Under the SEDA, Cornell Capital has committed to
provide up to $5 million of funding to be drawn down over a 24-month period at
Zann's discretion. In consideration of entering into the agreement, Zann Corp
has also issued shares of common stock and warrants to purchase common stock to
Cornell and to the placement agent for the transactions contemplated by the
SEDA.
According to Robert C. Simpson, Zann Corp CEO, "The successful execution of this
agreement with Cornell is part of the plan to enable Zann to increase our
production capacity to meet the requirements related to sales projections for
our semi-automatic riveting system as well as operating capital needed for
growth."
David Andresen, Vice President at Cornell Capital Partners, L.P., stated: "We
are excited about a long-term relationship with Zann Corp. We are looking
forward to working with the Company's management team and providing them with
expansion capital."
ABOUT ZANN CORP
ZANN Corp. Our primary business is the manufacture and sale of high quality,
high value semi automatic riveting tools and magazines. For additional
information please visit the corporate website at: www.zanncorp.com
ABOUT CORNELL CAPITAL PARTNERS, LP
Cornell Capital Partners, LP is a U.S.-based private equity fund. The Fund is
managed by Yorkville Advisors, LLC. The Fund is headquartered in New Jersey,
with offices in California, New York and London (UK). Since inception in 2001,
the Fund has made available in excess of $1.5 billion to over 250 publicly
traded corporations. For more information please visit:
www.cornellcapital.com
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Source: ZANN Corp.
Zann Corp. cautions that statements included in this press release that are not
a description of historical facts are forward-looking statements. You can
identify these statements by the fact that they do not relate strictly to
historical or current facts and use words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe" and other words and terms of
similar meaning in connection with a discussion of future operating or financial
performance or events. Examples of such statements include the statements above
regarding Cornell's commitment to fund and the Company's receipt of $5 million
from Cornell pursuant to the SEDA, and the increase of our production capacity
with Cornell's investment. The inclusion of these and other forward-looking
statements should not be regarded as a representation by the Company that any of
its plans will be achieved. Actual results may differ materially from those set
forth in this press release due to the risks and uncertainties inherent in the
Company's business, including, without limitation, risks detailed in the
Company's Securities and Exchange Commission filings, including its Annual
Report on Form 10-KSB and other reports filed with the Securities and Exchange
Commission. Given these uncertainties, readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. All forward-looking statements are qualified in their entirety by this
cautionary statement and the Company undertakes no obligation to revise or
update this press release including the forward-looking statements contained
herein to reflect events or circumstances after the date hereof or to update
the reasons actual results could differ materially from those anticipated in
these forward-looking statements, even if new information becomes available in
the future.
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Contact:
ZANN Corp.
Investor Relations
810-714-2978
ir@zanncorp.com
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Source: ZANN Corp.