RAYMOR INDUSTRIES INC.
TSX VENTURE : RAR

RAYMOR INDUSTRIES INC.

February 05, 2010 18:11 ET

Raymor Announces the Closing of a Private Investment Offer of $6,500,000

MONTREAL, QUEBEC--(Marketwire - Feb. 5, 2010) - Raymor Industries Inc. ("Raymor" or the "Corporation") (TSX VENTURE:RAR) is pleased to announce that, following the approval of the Courts and obtaining the required exemptions from the Autorite des marches financiers, the Alberta Securities Commission and the British Columbia Securities Commission, it has closed the previously announced private investment offer in Raymor (the "Transaction") by Georges Durst, Rolland Veilleux and another investor who joined the buying group (collectively, the "Buyer") in the amount of $6,500,000 and related restructuring transactions, including the cancellation of the issued and outstanding common shares of Raymor for no consideration.

As previously announced in the press releases dated December 7, 2009 and January 14, 2010, the Buyer subscribed for new common shares of the Corporation for a consideration of $6,500,000 less the total amount of the new preferred shares of the Corporation which have been issued subject to the following: holders of senior and subordinated secured debt (convertible debentures) as well as holders of demand notes were entitled to elect to receive at closing either (i) a corresponding number of new preferred shares, priced at $1 per share up to the amount of their debt, including principal and accrued and unpaid interest; or (ii) a cash payment equal to the amount of their debt, including principal and accrued and unpaid interest. The preferred shares are non-voting, non-participating, with a cumulative dividend of 4%, and redeemable at the paid-up capital plus any unpaid dividend.

Since all common shares that were listed and held by the public have been cancelled, an application to delist such common shares on the TSX Venture Exchange ("TSX-V") has been filed with the TSX-V. Furthermore, the Corporation has filed an application to cease to be a reporting issuer with the Autorite des marches financier, the Alberta Securities Commission and the British Columbia Securities Commission.

Certain statements contained in this release contain forward-looking statements. In this release, the use of future or conditional terms allows the use of forward-looking statements. Such statements reflect Raymor's current views with respect to future events or conditions, including the results of operations, financial situation, expected actions, plans or future strategies. Certain material factors and assumptions were used in formulating Raymor's conclusions and such forward-looking statements. By their nature, those statements reflect management's current views, beliefs and assumptions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, the uncertainty as to the outcome of regulatory approvals required to cease to be a reporting issuer. Many factors could cause Raymor's actual results, performance or achievements to be materially different from those that may be expressed or implied by these forward-looking statements. Should any of these risks or uncertainties materialize, or should the assumptions underlying the projections or forward-looking statements prove incorrect, our actual results may differ materially from those anticipated, believed, estimated or expected as described in this release. Unless otherwise required by law, the Corporation disclaims any intention or obligation to update these forward-looking statements, whether as a result of new information, plans, events or otherwise.

Neither 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.

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