WINNIPEG, MANITOBA -- (Marketwired) -- 07/10/13 -- Empire Industries Ltd. ("Empire" or the "Company") (TSX VENTURE: EIL) is pleased to announce that today it closed a non-brokered private placement of units (the "Private Placement") to Canada Zhoufa Agricultural Holding Company Limited ("Canada Zhoufa"), a subsidiary of Zhejiang ZF Investment Co. Ltd. ("ZZG") of China. The Company issued 60,000,000 Units at a price of $0.05 per Unit for gross proceeds of $3,000,000 with each Unit consisting of one common share and one-half of one warrant. Each whole warrant will entitle the holder to purchase one additional common share at a price of $0.05 per share on or before the date that is one (1) year from the closing, and thereafter at an exercise price of $0.10 per share on or before the date that is five (5) years from the closing. Canada Zhoufa subscribed for 50,400,000 Units for gross proceeds of $2,520,000. Insiders of the Company subscribed for 9,600,000 Units for gross proceeds of $480,000 or approximately 16% of the private placement. All securities issued pursuant to the Private Placement are subject to a four month hold pursuant to applicable securities legislation.
In conjunction with the closing of the Private Placement, the Board of Directors has appointed Jack Chang as a director of the Company. Mr. Chang is the founder and managing partner of Canadian Resources Capital, a private investment firm that is active in cross border businesses.
With reference to its press release dated May 15, 2013, the Company wishes to advise that the $2.0 million Convertible Debenture Private Placement, joint venture capitalization and the two Credit Facilities described therein will require additional time to complete, and close at a later date. Because the TSX-V preliminary approval of the Convertible Debenture Private Placement will expire before the Company expects to close the Convertible Debenture, the Company formally withdraws the existing application on file with the TSX-V. The Company intends to re-submit the application to the TSX-V and close the Convertible Debenture Financing as soon as practicable.
Zhejiang ZF Investment Co., Ltd. (ZZG)
Mr. Junliang Xie is the founder and Chairman of ZZG, a personal holding company with private equity investments in over ten independently operated industrial and service companies, predominately in China. Mr. Xie was in the first class of the Private Equity Investment Program offered by Peking University. Mr. Xie holds an Executive MBA degree from Zhejiang University. Mr.Xie is a director of three private equity funds in China; Zhoushan Rongsheng Investment Co., Ltd., Zhoushan Marine Economy Venture Capital Co., Ltd. and Beijing Qianzhou Qingyuan Investment Fund Management Co., Ltd. He is also the Managing Director of a recently created, RMB yen 5 billion (USD $800 million) private equity fund called the Zhoushan Restructuring Private Equity Fund, whose purpose is to invest for financial returns and improve Zhoushan industries' global competitiveness.
About Empire Industries Ltd.
Empire Industries Ltd. manufactures specialized engineered products and sells these products domestically and in select international export markets. The company has developed, designed and engineered products for the rapidly growing, global, media based attractions market. The company also provides steel fabrication & installation services, primarily to the industrial, commercial and infrastructure market in Western Canada. The company also has two key strategic equity partnerships; a 49% ownership of ACE Industrial Services that operates in the oil sands industrial maintenance services market, and a 45% ownership of a Chinese joint venture company in the steel fabrication market in Asia. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.
For more information about the Company, visit www.empind.com.
Reader Advisory
This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.
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.
Contacts:
Empire Industries Ltd.
Guy Nelson
Chief Executive Officer
(416) 366-7977
gnelson@empind.com
Empire Industries Ltd.
Allan Francis
Vice President - Corporate Affairs and Administration
(204) 589-9301
afrancis@empind.com
www.empind.com
