Central Industries Corporation Inc. Announces Private Placement Financing, Stock Option Grants and Settlement of Debt
November 27 2008 - 11:16AM
Marketwired
Central Industries Corporation Inc. (TSX VENTURE: CND.A)("CICI") is
pleased to announce a non-brokered private placement of up to
$900,000 at $0.04 per Unit. Each Unit will consist of one common
share and one warrant. Each warrant will be exercisable to acquire
one common share of CICI for twelve months at a price of $0.05 and
for an additional twelve months at a price of $0.10.
The Common Shares and Warrants comprising the Units will be
subject to a hold period of four months plus one day from the date
of issuance in accordance with the policies of the TSX Venture
Exchange and applicable securities laws.
Net proceeds will be used to expand production facilities, repay
debt and for working capital purposes.
Completion of the private placement offering is subject to the
approval of TSX Venture Exchange.
Stock Option Grant
CICI also announces that it has granted 275,000 options to
certain employees of CICI, subject to regulatory approval. The
options will be exercisable for a period of five years at an
exercise price of $0.10 per share.
Settlement of Debt
CICI announces that Hans Ruschke has delivered an invoice for
more than $700,000 for services rendered to CICI. The Company has
thoroughly investigated this claim. With the intention of avoiding
any further claim, CICI has settled this invoice as follows:
Subject to regulatory and TSX-V approval, it intends to proceed
with a Shares for Debt transaction with Hans Ruschke, whereby
Central Industries will issue 3,750,000 ("Debt Settlement Shares")
of CICI at a deemed price of $0.05 to Ruschke to settle part of the
outstanding debt owed to Ruschke in the amount of $187,500. The
Common Shares issued will be subject to a four-month hold period
from the date of closing. The issuance of the Debt Settlement
Shares will not result in a change of control.
The balance of the debt to Mr. Ruschke is to be settled no later
than May 1, 2009. Subject to these payments, Mr. Ruschke has signed
a full and final release of CICI.
The private placement offering, stock option grants and shares
for debt settlement are subject to regulatory approval and the
completion of definitive documentation.
Change of Directors
CICI announces that Michael Vinke has resigned as Director and
has been re-placed by Mauro Cerullo.
CICI announces that Gerald Salvati has resigned as Chief
Financial Officer of CICI and has been replaced by David
Ciavarella.
About Central Industries Corporation Inc.
CICI operates a federally inspected, HACCP approved, meat
processing company that converts wholesale cuts from a hog carcass
or "primal meat cut" and converts smaller cuts derived from the
primal cuts or "sub primal meat cuts" into fresh-boxed pork and
case ready products, hams and boneless picnic loins for shipment to
its customers. CICI's products are marketed and sold to Canadian
national and regional grocery chains, as well as in the
Asian-Pacific market and other international markets. In addition,
it is aggressively looking to expand into profitable niche
businesses in food processing and other industries.
This News Release may contain certain forward-looking
statements, which statements can be identified by the use of
forward- looking terminology such as "may", "will", "expect",
"anticipate", "estimate", "predict", "plans", or "continues" or the
negative thereof or any other variations thereon or comparable
terminology referring to future events or results. Forward looking
statements are statements about the future and are inherently
uncertain, and the Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of numerous factors, including without limitation, the need
for regulatory approval, marketing/manufacturing and
partnership/strategic alliance risks, the effect of competition,
uncertainty of the size and existence of a market opportunity for
the Company's products, as well as a description of other risks and
uncertainties affecting the Company and its business, as contained
in news releases and filings with the Canadian Securities
Regulatory Authorities, any of which could cause actual results to
vary materially from current results or the Company's anticipated
future results. Forward-looking statements are based on the
beliefs, opinions and expectations of the Company's management at
the time they are made, and the Company does not assume any
obligation to update its forward-looking statement if those
beliefs, opinions or expectations, or other circumstances should
change.
The Toronto Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of the content
of this News Release.
Contacts: Central Industries Corporation Inc. Zoran Konevic CEO
(905) 272-3133
Central Industries (Tier2) (TSXV:CND.A)
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