CRS Electronics

CRS Electronics

April 04, 2011 19:06 ET

CRS Electronics Announces Proposed $5 Million Equity Financing

WELLAND, ONTARIO--(Marketwire - April 4, 2011) -


CRS Electronics Inc. ("CRS" or the "Company"), (TSX VENTURE:LED), an inventor, developer and manufacturer of LED lighting, is pleased to announce that it intends to undertake a "best efforts" brokered private placement of up to 9,100,000 Units at an Offering Price of $0.55 per Unit for gross proceeds to the Company of up to $5,005,000 (the "Offering"). In addition, the Company will grant the Agents an over-allotment option to sell additional Units of the Company, to raise additional gross proceeds of up to $1,000,000 exercisable at any time up to 48 hours prior to the closing of the Offering.

Each Unit will be comprised of one common share of the Company and one half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share of the Company at a price of C$0.65 for a period of 36 months following the closing date of the Offering. At any time after the closing date of the Offering, the warrants will expire and be of no further force or effect if not exercised within 10 days of receipt of notice from the Company that the 20 day volume weighted average trading price of the common shares of the Company on the TSX Venture or such other stock exchange that the common shares may then be listed on is greater than $1.00.

The net proceeds from the Offering will be used to fund the purchase of new production equipment, infrastructure costs, increased staffing, marketing & media expenses, and for general corporate and working capital purposes.

Canaccord Genuity Corp. is acting as lead agent for the Offering on behalf of a syndicate of agents (the "Agents"). Closing of the Offering is anticipated to occur on or about April 19, 2011 and will be conditional upon, among other things, the receipt of all necessary regulatory approvals. All securities issued pursuant to this private placement are subject to a four month hold period from closing.

About CRS 

CRS Electronics Inc., an Energy Star and Lighting Facts partner, is a leader in the emerging, rapidly-growing market of high efficiency light-emitting-diode ("LED"), or, solid state lighting ("SSL"). The principal activities of CRS include the development, manufacture and sale, primarily in North America, of indoor lighting such as LED replacement lamps, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED circuit boards. CRS plans to be a major supplier of LED light engines for a variety of applications to be developed by CRS on its own and in conjunction with its customers. CRS recently signed a license agreement with Eveready Battery Company Inc., a subsidiary of Energizer Holdings Inc., for CRS to manufacture a suite of LED lighting products under the brand name Energizer. The initial LED suite of products includes the MR16, PAR 20, PAR 30 and PAR 38. Future products developed by CRS may also be considered by Energizer.

Certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in CRS's public filings, CRS's future outlook and anticipated events or results and can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other CRS filings, and include the effect of capital market conditions and other factors on capital availability and the ability to complete the closing of the financing; sufficient working capital for development and operations, availability of a qualified work force, availability of manufacturing equipment and the ultimate ability execute its business plan on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other CRS filings at and other unforeseen events or circumstances. Other than as required by law, CRS does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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