2012-10-25 00:49:38 -
Toronto, Ontario CANADA, October 24, 2012 /FSC/ - Enssolutions Group Inc. (ENV - TSX Venture, NSLSF - OTC Pink) ("Enssolutions" or the "Company"), a manufacturer and distributor of environmentally responsible emulsion products for a wide variety of industrial and commercial market demands, is pleased to announce a private placement of up to 40,000,000 common shares of the Company at a price of $.05 per common share for aggregate gross proceeds of up to $2,000,000 (the "Offering"). The Company expects to use the proceeds of the Offering for general working capital and inventory. David Lincoln, a member of the Board and the holder of approximately 74% of the outstanding common shares of the Company, has agreed to participate in the offering
and will be purchasing 30,000,000 common shares for an aggregate subscription price of $1,500,000.
The Company expects to complete the Offering in early November 2012.
Closing of the Offering is subject to the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange for the listing of the additional common shares. The common shares to be issued pursuant to the Offering will be subject to a statutory hold period of four months and one day from the closing date.
Darren Dierich, the Company's CFO, commented: "The private placement will allow Enssolutions to strengthen sales efforts and build a solid foundation for continued growth."
Phil Moruzi, the Company's interim CEO, commented: "With the ability for capital improvements and purchases, we seek to strengthen our internal process and improve our product."
A material change report in respect of the Offering will be filed less than 21 days before the closing of the transaction. Such shorter period is necessary in order to ensure the successful completion of the Offering and to provide the Company with sufficient working capital to fund its operations.
Enssolutions manufactures, distributes and applies environmentally responsible products to meet a wide variety of industrial and commercial market demands. Enssolutions provides engineered environmental solutions for mine tailings control, process dust and erosion control, granular stabilization, road construction/maintenance and stockpile sealing. It has production facilities in Hamilton, Ontario and Phoenix, Arizona that service some of North America's largest mining, steel, cement, and road construction/maintenance companies as well as numerous public road authorities.
For more information on Enssolutions, please visit www.enssolutions.com
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
For Further Information:
Darren Dierich, Chief Financial Officer
t: (877) 520-6767
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.
To view this press release as a webpage, please click on the following link: