June 17, 2010 (FinancialWire) — Northcore Technologies Inc. (TSX: NTI) (OTCBB: NTLNF), a provider of asset management technology solutions, said that it has entered into an agreement with GEM Global Yield Fund Ltd. for a Cdn $6 million equity line of credit.

Northcore said that the funds raised will be used for the enhancement of existing and development of new product lines within the company's Working Capital Engine.

According to the terms of the agreement, GEM has agreed to provide Northcore with up to Cdn $6.0 million in the form of an equity line of credit. The company said it will control the timing and maximum amount of any draw downs under this facility, and has the right not the obligation, to draw down on available funds. Under the deal, Northcore has the option within the terms of the agreement, to draw down funds in tranches by requiring GEM to subscribe for the company's common shares at a 10 percent discount to the average closing price of the shares over a 15 day trading period following the draw down notice date.

As part of the equity credit line transaction, Northcore has agreed to issue six million warrants to GEM.

The warrants will be exercisable for a period of three years from the closing notice date at an exercise price of Cdn $0.27 per share.

Canada-based Northcore Technologies provides its Working Capital Engine to help organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to customers in sectors including financial services, manufacturing, oil and gas and government.

Northcore owns 50 percent of GE Asset Manager, LLC, a joint business venture with GE (NYSE: GE).

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