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RS Announces Completion of Bridge Financing and Update in Respect of Its Election to Satisfy $25 Million Principal Amount of 8.5% Unsecured Convertible Debentures Due October 7, 2010 by Issuing Common Shares
RS Announces Completion of Bridge Financing and Update in Respect of Its Election to Satisfy $25 ...
About this update from Real Estate Split Corp Class A
[{"type":"text","content":"\n\n\n\n Aug. 17, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES/\n\nCALGARY, Aug. 17 /CNW/ - RS Technologies Inc. ("RS") (RS - TSX), a technology innovator and manufacturer of advanced composite products for infrastructure markets, today announced the closing of its previously announced bridge financing. At closing, RS issued a $2 million principal amount of unsecured promissory note (the "Note") and 1,000,000 common shares of RS to Marjad Inc., a company wholly owned by RS's Chairman, Mr. Wilmot Matthews, for total gross proceeds of $2 million. The Note is due and payable on November 1, 2010 (the "Maturity Date") and accrues interest at a rate of twelve (12%) percent per annum payable on the Maturity Date. Pursuant to the terms of the Note, RS must repay the Note, together with any accrued interest, out of the net proceeds of the first debt or equity financing completed by RS on or before the Maturity Date. The common shares of RS issued pursuant to the private placement are subject to a hold period until December 18, 2010.\nRS intends to use the proceeds from the bridge financing to fund general working capital deficiencies until RS secures permanent funds for its near term working capital needs and its anticipated manufacturing expansion. As announced on June 22, 2010, RS has engaged Macquarie Capital Markets Canada Ltd. as its financial advisor to assist RS in securing funds for both its near term working capital needs and its anticipated manufacturing expansion. RS, together with its financial advisor, is actively engaged in seeking debt and/or equity financing in order to raise funds necessary to fund RS's working capital deficit, to pay RS's accounts payable and accrued liabilities, and to make capital improvements to enhance manufacturing. RS does not currently have any arrangements in place for the completi...