Omni-Lite Announces Bought-Deal Private Placement Financing For Proceeds of CDN$5.6 Million
Omni-Lite Industries Canada Inc.
January 26, 2011
CERRITOS, CALIFORNIA, January 26, 2011 - Omni-Lite Industries Canada Inc. (TSX VENTURE:OML) (the "Company") today announced that it has entered into an agreement with Raymond James Ltd., as a lead underwriter on behalf of a syndicate of underwriters (the "Underwriters")to sell to the Underwriters, on a bought deal private placement basis, 2,600,000units of the Company (The "Units") at a price of CDN $2.15 per Unit (the "Issue Price") for total gross proceeds of CDN $5,590,000 (the "Offering"). Each Unit shall be comprised of one common share of the Company and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"). Each Warrant shall be exercisable to acquire one common share of the Company (a "Warrant Share") for a period of two years following the closing of the Offering at an exercise price of CDN $2.70 per Warrant Share, subject to adjustment in certain events.
The Company has also granted the Underwriters the option (the "Underwriters' Option"), exercisable in whole or in part upto 48 hours prior to closing of the Offering, to purchase up to 390,000 additional Units of the Company at the Issue Price per Unit for additional gross proceeds of up to $838,500.
Omni-Lite Industries Canada Inc. plans to use the net proceeds of this financing to fund the Company's pipeline of near-term program opportunities, particularly in the military and automotive divisions, as well as for general corporate purposes.
The Offering is scheduled to close on or about February 16, 2011 and is subject to the receipt of all necessary regulatory, stock exchange and shareholder approvals as are appropriate in the circumstances, including the approval of the TSX Venture Exchange.
The Units will be sold by private placement without an offering memorandumin all provinces of Canada.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of Omni-Lite Industries in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or unless an exemption from such registration is available.
Omni-Lite is a rapidly growing high technology company that develops and manufactures precision components utilized by several Fortune 500 companies including Boeing, Airbus, Alcoa, Ford, Caterpillar, John Deere, Borg Warner, Chrysler, the U.S. Military, Nike, and adidas.
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.
For further information: Mr. Tim Wang, CFO, Tel. No. (562) 404-8510, or (800) 577-6664 (Canada and USA), Fax. No. (562) 926-6913, email: firstname.lastname@example.org
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