EDMONTON, June 29 /CNW/ - Resin Systems Inc. ("RS") (RS - TSX / RSSYF -
OTCBB), a composite products innovation company, announced today the closing
of its previously announced marketed private placement equity financing. At
closing, a total of 5,600,980 units (the "Units") of RS were issued at a price
of $1.75 per Unit for gross proceeds of $9.8 million. Each Unit consisted of
one common share ("Common Share") and one-half of one common share purchase
warrant of RS, each whole warrant entitling the holder thereof to acquire one
Common Share at an exercise price of $2.25 per share until December 28, 2007.
RS intends to use the net proceeds of the offering to fund order
fulfillment of its RStandard(TM) modular composite utility poles, the
commercialization and further development of its Version(TM) resins and
related products, and for general working capital purposes.
CIBC World Markets Inc. and Kingsdale Capital Markets Inc. (the "Agents")
acted as RS's agents in connection with the private placement. As part of the
consideration for their services, the Agents were issued broker warrants to
purchase an aggregate of 280,049 Units at an exercise price of $1.85 per Unit
until December 28, 2007.
All of the Common Shares, warrants and broker warrants issued by RS
pursuant to the private placement are subject to a hold period until October
29, 2006.
About RS
RS is a composite product innovator. RS engineers advanced composite
products for large-scale industrial markets. These products replace products
which historically have been made using conventional building blocks of wood,
concrete and steel. The foundation of RS is continuous innovation, product
development and 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 brought to market the award winning
RStandard(TM) modular composite transmission and distribution structure and is
in various stages of development with other composite products. For the latest
on RS's developments, click on "Latest News" on www.grouprsi.com.
"Version" and "RStandard" are trademarks of RS.
The securities offered have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act"),
and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons except in certain transactions exempt from
the registration requirements of the U.S. Securities Act.
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.
