Shift Networks closes $5.2 million equity financing

On June 14, 2006, Shift Networks Inc., the leader in next generation Voice over IP services for small to medium-sized businesses, announced that, subject to regulatory approval, it had closed a $5.2 million brokered private placement of units, consisting of 34,666,667 Units at $0.15 per Unit. Each Unit consisted of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant is exercisable into one common share at a price of $0.18 until June 14, 2008.

Shift Networks intends to use the proceeds to: accelerate expansion in Eastern Canada and fund growth in Calgary, Edmonton and Vancouver; deploy new network technology; and reduce demand barriers with lower priced telephone handsets bundled with monthly service.

Rob Mason and Sarah Gingrich of Fasken Martineau advised Loewen, Ondaatje, McCutcheon Limited, the lead agent for the Private Placement.