Cryopak Industries Inc.

Cryopak Industries Inc.

March 24, 2005 06:00 ET

Cryopak Announces Proposed Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CRYOPAK INDUSTRIES INC.

TSX VENTURE SYMBOL: CYK
OTC Bulletin Board SYMBOL: CYPKF

MARCH 24, 2005 - 06:00 ET

Cryopak Announces Proposed Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 24, 2005) - Cryopak
Industries Inc. (TSX VENTURE:CYK)(OTCBB:CYPKF) wishes to announce that,
in light of its accumulated operating losses and in order to address its
immediate working capital needs, it has received commitments with
respect to a non-brokered private placement of Secured Subordinate
Convertible Debentures (the "Debentures") in the principal amount of
$1,000,000, subject to regulatory approval.

Under the terms of the proposed private placement, the Company plans to
issue Debentures maturing five years from the date of issuance and with
a coupon rate of 15% per annum, payable monthly in arrears. The
Debentures will be secured by a charge on the assets of the Company,
subordinate to the security interest held by the Company's bank lender.
The Debentures will be convertible at any time after their issuance into
common shares of the Company at the holder's option at $0.36 per Common
Share in the first two years, $0.40 in year 3, $0.44 in year 4, and
$0.49 in year 5. The Company will also have the option to prepay
Debentures anytime after one year from the date of issue or to require
the holders to convert the Debentures if the Common Shares traded at a
price in excess of 250% of the conversion price for 90 consecutive days
or more.

It is anticipated that the Debentures and Common Shares issuable under
the Debentures will be subject to a four-month hold period. The Company
anticipates completion of this private placement in the coming days due
to the aforementioned immediate need for the funds. The net proceeds
from the private placement are expected to be used to meet current
liabilities and for working capital purposes. The Company continues to
be in discussions with additional parties, including potential strategic
partners, in an effort to improve its working capital position and
explore various strategic options.

Esarbee Investments Ltd., an insider of the Company, B.C. Discovery Fund
(VCC) Inc., which is related to an insider of the Company, Mr. John
McEwen, Chairman of the Company, and Mr. Martin Carsky, Chief Executive
Officer of the Company, intend to subscribe for $500,000, $250,000,
$35,000 and $26,000 of the Debentures, respectively.

About Cryopak

With facilities in Vancouver and Montreal, we are a leading provider of
temperature-controlling products and solutions. Our clients include some
of North America's leading retailers and consumer goods companies, as
well as global pharmaceutical companies. In our retail business, we
develop, manufacture and sell reusable ice substitutes, flexible hot and
cold compresses, reusable gel ice and instant hot and cold packs. These
products are marketed under such popular brand names as Ice-Pak™,
Flexible Ice™ Blanket, Simply Cozy®, and Flex Pak™. In our
pharmaceutical business, we engineer solutions and supply products that
help our customers safely transport their temperature sensitive
pharmaceuticals. Over the past few years we have evolved into a
recognized player in this growing segment as we assist customers in
optimizing their cold chain processes. Our shares are listed on the TSX
Venture Exchange under the symbol CYK. For more information about our
Company, please visit our website address at: www.cryopak.com or call
1.800.667.2532.

ON BEHALF OF THE BOARD OF DIRECTORS

Martin Carsky, President and CEO

Certain statements contained herein are "forward-looking" statements (as
such term is defined in the Private Securities Reform Act of 1995).
Because such statements include risks and uncertainties, actual results
may differ from those expressed or implied by such forward-looking
statements.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cryopak Industries Inc.
    Martin Carsky
    President and CEO
    1-800-667-2532
    www.cryopak.com