CRS Electronics Inc.

October 02, 2009 09:24 ET

CRS Electronics Completes $525,000 Private Placement

WELLAND, ONTARIO--(Marketwire - Oct. 2, 2009) - CRS Electronics Inc. ("CRS"), (TSX VENTURE:LED), an engineer, designer, and manufacturer of LED lighting, is pleased to announce the successful closing of its previously announced non-brokered private placement.

By way of the private placement, 1,749,999 Units were issued for aggregate gross proceeds of $525,000. The Units were comprised of one Common Share and one half warrant at a price of $0.30 per Unit. Each whole warrant entitles the holder to acquire one common share upon payment of $0.50 per common share for a period of twelve (12) months. The total maximum number of common shares to be issued if all warrants are exercised is 2,624,997 representing approximately 12% of the current common shares issued and outstanding. The warrants will not be registered for trading and all common shares issued directly or through the exercise of warrants will have a four month hold period from the date of closing. The private placement was a non-brokered private placement, but, a finders fee equal to $2,500 was paid to an agent not related to the corporation. for a subscription received from a subscriber introduced by the agent.

"We are very pleased to have completed our first financing as a public company, having received funds at the maximum participation level. This financing, along with recent government grants, allows us to advance our aggressive growth strategy significantly," said Scott Riesebosch, President of CRS Electronics. "The proceeds will benefit our sales and marketing activities, and enhance our production capacity."

All of the subscribers are accredited investors based in Canada or based in the United Sates. The financing is subject to final acceptance by the TSX Venture Exchange.

About CRS

CRS 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 and outdoor lighting such as LED replacement lamps, LED streetlights, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED circuit boards. CRS is a well-established supplier to both the school bus industry and the LED contract manufacturing industry, providing a stable and growing revenue source. 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. The Company currently sells one of the very few replacement LED MR16 lights capable of replacing a halogen 50 watt MR16.

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 Podium's public filings, Podium'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 and include, but are not limited in any manner to, those with respect to capital and operating expenditures, economic conditions, availability of markets for products, availability to develop and manufacture products, availability of sufficient financing, receipt of approvals, satisfaction of escrow requirements, satisfaction of closing conditions, obtaining debt financing for capital expenditures, and any and all other timing, development, operational, financial, economic, legal, regulatory and/or political factors that may influence future events or conditions. 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 Podium filings, and include sufficient working capital for development and operations, access to adequate services and supplies, availability of markets for products, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and other sources of financing and associated cost of funds, availability of a qualified work force, availability of manufacturing equipment, no material changes to the tax and regulatory regime 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 Podium filings at and other unforeseen events or circumstances. Other than as required by law, Podium 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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