Omni-Lite Announces Closing of Bought-Deal Private Placement Including Over-Allotment Option for Gross Proceeds of CDN$6.9 Million
Omni-Lite Industries Canada Inc.
February 16, 2011
CERRITOS, CALIFORNIA, February 16, 2011 - Omni-Lite Industries Canada Inc. (TSX VENTURE:OML) (the "Company") today announced the successful closing of its previously announced bought deal private placement of 2,800,000 units of the Company (the "Units") at a price of CDN $2.15 per Unit. The private placement was completed through a syndicate of underwriters led by Raymond James Ltd. and including Northern Securities Inc. (the "Underwriters"). The Underwriters also exercised in full their over-allotment option to acquire an additional 420,000 Units at a price of $2.15 per Unit. The total offering of 3,220,000 Units resulted in the Company receiving aggregate gross proceeds of approximately CDN$6.9 million.
Each Unit is comprised of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"). Each Warrant is exercisable to acquire one common share of the Company (a "Warrant Share") for a period of two years following the closing date at an exercise price of CDN $2.70 per Warrant Share, subject to adjustment in certain events. The Common Shares, Warrants and any Warrants Shares issued upon the exercise of the Warrants are subject to a hold period of four months from the closing date.
The Company 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.
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 statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, the use of the net proceeds of the offering. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States or any other jurisdiction outside of Canada in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: Mr. Tim Wang, CFO, Tel. (562) 404-8510, or (800) 577-6664 (Canada and USA), Fax. (562) 926-6913, email: firstname.lastname@example.org
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