Eagle I Capital Corporation
TSX VENTURE : EIC

October 01, 2010 16:02 ET

Eagle I Acquires Operating Assets of Miguel's Products, LLC and Announces Closing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

EAGLE I CAPITAL CORPORATION ("Eagle I" or the "Company") (TSX VENTURE:EIC) is pleased to announce that on September 30, 2010, it has acquired, through its wholly-owned subsidiary, Eagle Acquisition, Inc., certain operating assets formerly owned by Miguel's Products, LLC, consisting of trademarks, trade names, recipes, formula and related intellectual property (collectively, the "Miguel's Operating Assets") from WWS Holdings, LLC, a New Jersey limited liability company, pursuant to the terms and conditions of a trademark and intellectual property license agreement as of September 1, 2010 (the "License Agreement"), which agreement was announced in the press release issued by the Company on September 3, 2010 and a copy of which is available on www.sedar.com. The acquisition of Miguel's Operating Assets constitutes the Company's qualifying transaction (the "Qualifying Transaction") under the policies of the TSX Venture Exchange.

Upon the close of the Qualifying Transaction, Louise Birnberg, as trustee of the Jack Birnberg Trust, became an insider of the Company, holding 1,350,000 Common Shares (as defined below), representing approximately 13.7% of the Common Shares issued and outstanding.

The common shares of the company (the "Common Shares") are now trading on the TSX Venture Exchange under the symbol "EIC".

The Miguel's Operating Assets consist of proprietary intellectual property and business relationships necessary to manufacture and sell all natural and organic tortilla chips, salsa and other snack products under the Miguel's brand. Such products are sold in 35 states under the Miguel's Stowe Away® and other private label brand names.

Eagle I is also pleased to announce that further to its news release dated June 11, 2010, Eagle I has closed a private placement of 3,215,500 units (the "Units") for aggregate gross proceeds of $803,875 (the "Private Placement"). Each Unit is comprised of one Common Share and one-half of one Common Share purchase warrant (a "Warrant"). Each whole Warrant is exercisable to acquire one Common Share until March 29, 2012 at an exercise price of $0.35 per Common Share.

Canaccord Genuity Corp. ("Canaccord") acted as agent for a portion of the Private Placement and as consideration for their services received $48,650 commission in cash, 150,000 Units, as a corporate finance fee, an administration fee, and 194,600 warrants (the "Agent's Warrants"). Each Agent's Warrant entitles the holder to acquire a Common Share for a price of $0.35 per Common Share up until March 29, 2012. The net proceeds of the Private Placement will be used to fund product development and for general working capital.

Canaccord will use commercially reasonable efforts to continue its marketing efforts to sell Units, up to a maximum of an aggregate of 4 million Units (including the 3,215,500 Units sold to date).

The securities issued by the Company pursuant to the Private Placement are subject to a hold period of four months and one day from the date of issuance as required by securities laws and the policies of the TSX Venture Exchange, as applicable. The securities issued pursuant to the Private Placement have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and the securities may not be offered or sold in the United States absent registration or an applicable exemption from such registration. This news release does not constitute an offer of securities.

On behalf of EAGLE I CAPITAL CORPORATION

"Barry Atkins"

Barry Atkins
President & CEO
Eagle I Capital Corporation

This press release contains forward-looking statements about Eagle I and its future plans, including reaching the maximum number of Units sold under Eagle I's agency agreement with Canaccord (the "Agency Agreement"). Forward-looking statements are statements that are not historical. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause Eagle I's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. These risks, uncertainties and other factors include, without limitation, uncertainties as to the availability and cost of financing; the ability of Eagle I, through Canaccord, to raise the maximum number of Units pursuant to the Agency Agreement, general economic factors and other factors that may be beyond the control of Eagle I. Forward-looking statements are based on the beliefs, opinions and expectations of the management of Eagle I, at the time they are made, and Eagle I does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Eagle I Capital Corporation
    Barry Atkins
    President & CEO
    480-209-6783
    604 687 8678 (FAX)