ESI Closes Previously Announced $1.5 Million Debt Conversion
March 03 2011 - 8:00AM
Marketwired
E.S.I. Environmental Sensors Inc. (TSX VENTURE: ESV) ("ESI" or the
"Company") is pleased to announce it has received TSX Venture
Exchange ("Exchange") final acceptance of a debt conversion
originally announced on September 8, 2010. The private placement
consists of 30,000,000 Units at $0.05 per Unit for total value of
$1,500,000, and with each Unit consisting of one common share and
one share purchase warrant ("Warrant"). The Company has now issued
30,000,000 common shares and 30,000,000 Warrants. Each Warrant will
be exercisable into an additional common share at a price of $0.10
until February 15, 2012. In addition, the shares and Warrants have
a four month hold period expiring on June 16, 2011.
This transaction was originally announced in the form of a one
year convertible debenture, however, the terms were revised to an
equity private placement in order to comply with Exchange policies
and now match the terms offered to other placees in an equity
private placement of $750,000 also announced on September 8, 2010
and closed on November 4, 2010.
Background:
On September 8, 2010, the Company announced that an agreement
was reached with Avis Financial Corporation ("Avis Financial") to
convert a current demand loan on the Company's balance sheet into a
convertible debenture. The principal amount of the debt owed to
Avis Financial totaled $1.5 million. The new debenture was to be
convertible into common shares at $0.05 per share for a period of
one year from the closing date. In addition, the debenture was to
bear interest at a rate of 12%. Due to the number of shares which
could be issued on conversion of the debenture, at the Company's
Annual General Meeting on September 29, 2010, the Company sought
and received disinterested shareholder approval for the potential
creation of a new control person, namely Avis Financial. The
Company recently received final Exchange acceptance to close this
transaction. The Company has paid a finder's fee of 2,400,000
common shares in connection with the private placement.
About Avis Financial Corporation
Avis Financial is an innovative, integrated business development
engine that assists small and medium-sized enterprises (SMEs) in
realizing their full potential. Involved at every step of the way,
Avis Financial provides a truly comprehensive package of services
to its portfolio companies, who further benefit from a high-profile
brand, a major international network and extensive business
expertise. Avis Financial's services include capital and
operational restructuring, business development and placement
preparation. To ensure that its portfolio companies receive support
at every level, Avis Financial works with a large network of
affiliates providing business and capital services.
About ESI
ESI is a leading manufacturer of patented and proprietary
solutions for environments where understanding the presence,
movement, and/or amount of water are important. Major market
sectors include: agriculture, golf and turf, scientific research,
civil engineering, mining, environmental monitoring and crude oil
production. ESI solutions have been successfully introduced into
more than 40 countries to enable customers to optimize their
operations by monitoring the presence and movement of water,
managing irrigation systems, and monitoring the integrity of
landfill covers. In addition, ESI's FloPointâ„¢ instrument has been
deployed in the oil industry to measure the volumetric presence of
water pumped during crude oil extraction for characterization and
optimization of the process. ESI differentiates itself by
translating the best technology and science available into
practical, easy to use solutions. Irrigation managers, reservoir
engineers, and scientists have adopted ESI's products for their
accuracy, ease of use, repeatability, and ability to operate in
challenging environments. ESI is publicly traded on the TSX Venture
Exchange under the symbol "ESV". Further information about ESI may
be obtained through the Company's website at www.esica.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: E.S.I. Environmental Sensors Inc. Investor Relations
250.655.3211 or 1-800.799.6324 investor.relations@esica.com E.S.I.
Environmental Sensors Inc. Bernard M. Beauchesne Media and Investor
Relations Contact 250.655.3211 or 1-800.799.6324
bbeauchesne@esica.com www.esica.com
E.S.I. Environmental Sensors (TSXV:ESV)
Historical Stock Chart
From Aug 2024 to Sep 2024
E.S.I. Environmental Sensors (TSXV:ESV)
Historical Stock Chart
From Sep 2023 to Sep 2024