EDMONTON, Nov. 6 /CNW/ - Resin Systems Inc. ("RS") (RS - TSX / RSSYF -
OTCBB), a composite products innovation company, announced today the closing
of its previously announced private placement equity financing. At closing, a
total of 3,378,378 common shares of RS were issued at a price of $1.48 per
share for gross proceeds of $5.0 million.
RS intends to use the net proceeds of the offering to fund order
fulfillment of its RStandard(TM) modular composite utility poles and for
general working capital purposes.
Kingsdale Capital Markets Inc. (the "Agent") acted as RS's agent in
connection with the private placement. As part of the consideration for its
services, the Agent was issued broker warrants to purchase an aggregate of
168,919 common shares of RS at an exercise price of $1.70 per share until
November 6, 2007.
All of the common shares and broker warrants issued by RS pursuant to the
private placement are subject to a four month hold period.
About RS
RS is a composite product innovator. RS develops advanced composite
products for large-scale industrial markets. These products replace products
which traditionally have been made using conventional building blocks of wood,
concrete and steel. The foundation of RS is continuous innovation and product
development utilizing its proprietary Version(TM) polyurethane resin system.
RS's business strategy is to continually seek out future business
opportunities in its realm of expertise while applying a focused, disciplined
approach to commercializing those opportunities that pass its business tests.
To date, RS has successfully developed and is bringing to market the award
winning RStandard(TM) modular composite transmission and distribution
structure and is in various stages of development of additional new composite
products. For the latest on RS's developments, click on "Latest News" on
www.grouprsi.com.
"Version", "RStandard" and "VRoll" are trademarks of RS.
This news release contains forward-looking statements as it pertains to
the expenditure of the net proceeds of the offering by RS. The forward-looking
statements as to the expenditure of the net proceeds of the offering are not
guarantees of how the net proceeds will be spent and undue reliance should not
be placed on them. The actual expenditure of the net proceeds may differ
materially as a result of any number of factors and uncertainties, many of
which factors are beyond RS's control. Many of these risks and uncertainties
are described in RS's 2005 annual information form, RS's management's
discussion and analysis and other documents RS files with the Canadian
securities authorities and the United States Securities and Exchange
Commission.
