Resin Systems Announces Unit Offering

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[{"type":"text","content":"\n\n\n\nCALGARY, Nov. 20 /CNW/ - Resin Systems Inc. ("RS"), (RS - TSX / RSSYF -\nOTCBB), today announced that it intends to sell by way of private placement up\nto 5,000 units of RS at a price of $1,000 per unit for total gross proceeds of\nup to $5 million (the "Offering"). Each unit of RS consists of a $1,000\nprincipal amount of 15% secured redeemable convertible debenture (the\n"Debenture") and 4,000 common share purchase warrants, each whole warrant\nentitling the holder thereof to acquire one (1) common share of RS at a price\nof $0.18 per share for a period of five years from the closing date of the\nOffering. The proceeds of the Offering will be used as working capital and for\ngeneral corporate purposes. It is anticipated that closing of the Offering\nwill occur on or about December 5, 2008. Completion of the Offering is subject\nto certain conditions including the receipt of all necessary regulatory\napprovals, including listing on the Toronto Stock Exchange (the "TSX") of\ncommon shares which may be issued on exercise or conversion of securities\nsubject to the Offering. The securities of RS issuable pursuant to the\nOffering will be subject to a hold period of four months and one day from the\nclosing date. All of the eligible members of the Board of Directors of RS and\nofficers of RS intend to subscribe for an aggregate of approximately $2.6\nmillion of units pursuant to the Offering, including Wilmot Matthews, the\nChairman of RS, and Paul Giannelia, the President and Chief Executive Officer\nof RS, who each intend to subscribe for $1.0 million of units.\n\n\nThe Debentures will be due five years from the closing date and bear\ninterest at 15% per annum payable annually (each an "Interest Payment Date")\ncommencing November 30, 2009. RS will have the option, subject to regulatory\napproval, to elect to satisfy its obligation to pay such interest by issuing\nand delivering that number of freely tradeable common shares obtained by\ndividing the amount of interest by 85% of the volume weighted average trading\nprice of the common shares on the TSX for the five consecutive trading days\nending five trading days immediately proceeding the Interest Payment Date.\n\n\nThe Debentures will rank senior to all existing indebtedness of RS and\nwill be secured by a charge on al...

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