Omni-Lite completes $1.8-million private placement
Omni-Lite Industries Canada Inc.
February 9, 2005
Omni-Lite Industries Canada Inc. (the "Company" or "OML") is pleased to announce that it has completed its previously announced bought deal private placement (the "Bought Deal") with Acumen Capital Finance Partners Limited ("Acumen"), as underwriter.
The Company received gross proceeds of $1,800,000 in consideration for the issuance of 1,500,000 units of the Company (the "Units") at a price of $1.20 per Unit. Each Unit consists of one common share of OML ("Common Share") and one-half of one Common Share purchase warrant ("Warrant"), with each whole Warrant entitling the holder to acquire one Common Share at a price of $1.60 for a period of eighteen months following the closing date. If each Warrant is exercised, an additional $1,200,000 in total gross proceeds will be realized upon the issuance of 750,000 additional Common Shares. The Common Shares and Warrants comprising the Units are subject to a four-month hold period which expires on June 9, 2005.
Acumen was paid a cash commission of $135,000 or 7.5% of the gross subscription proceeds and was granted non-transferable compensation options exercisable to acquire up to 112,500 Units. The compensation options are exercisable for a period of eighteen months following the closing date at an exercise price of $1.20 per Unit.
In addition to the Bought Deal, the Company completed a concurrent non- brokered private placement for additional gross proceeds of $180,000 in consideration for the issuance of 150,000 Units at a price of $1.20 per Unit. If each Warrant issued pursuant to the non-brokered private placement is exercised, an additional $120,000 in total gross proceeds will be realized upon the issuance of 75,000 additional Common Shares. The Common Shares and Warrants comprising the Units issued pursuant to the non-brokered private placement are also subject to a four-month hold period which expires on June 9, 2005. No commission was paid or compensation granted for the non-brokered private placement.
Management of the Company anticipates that the net proceeds of approximately $1.65 million will be used for debt repayment, working capital and general corporate purposes.
"Intended to support the increased international interest in advanced materials, in which Omni-Lite has been an innovator for the past ten years, this financing will allow Omni-Lite to aggressively pursue new material developments in the near future," stated David F. Grant, Chairman and CEO. "This partnership with Acumen should bring the Company's successes to a broader range of investors, both retail and institutional."
Acumen Capital Finance Partners Limited is an independent, full service investment dealer based in Calgary, Alberta, Canada. Acumen's business has two overlapping focuses:
1. Independent retail brokerage and wealth management, offering a full range of investment products and a high level of customer service.
2. Investment banking, institutional sales and trading, and in-house research operations focused on junior oil and gas producers and small market cap non-resource growth companies.
Acumen is a member of the Toronto Stock Exchange (TSX) and the Investment Dealers Association of Canada (IDA). Client comfort is enhanced by Acumen's membership in the Canadian Investor Protection Fund.
Omni-Lite is a rapidly growing high technology company that develops and manufactures precision components utilized by companies including Boeing, Airbus, Bombardier, Alcoa, Daimler-Chrysler, the U.S. Military, Nike, Adidas and Reebok.
Except for historical information contained herein this document contains forward-looking statements. These statements contain known and unknown risks and uncertainties that may cause the company's actual results or outcomes to be materially different from those anticipated and discussed herein.
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF THE
INFORMATION CONTAINED HEREIN.
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