EIS Capital Corp.

April 29, 2011 14:00 ET

EIS Capital Corp. Provides Update on Proposed Acquisition of Entrec Transportation Services Ltd.

CALGARY, ALBERTA--(Marketwire - April 29, 2011) -


EIS CAPITAL CORP. ("EIS") (TSX VENTURE:EIE.P) is pleased to announce that it has filed on SEDAR a Filing Statement dated April 28, 2011 for its previously announced proposed acquisition (the "Acquisition") of the business of Entrec Transportation Services Ltd. ("Entrec").

As previously announced, concurrent with the completion of the Acquisition, and in order to fund the Purchase Price (as defined below) for the Acquisition, EIS will complete a private placement (the "Private Placement") of common shares of EIS (the "EIS Shares") and arrange for a credit facility (the "Debt Financing", and together with the Private Placement and Acquisition, collectively referred to as the "Transactions"). However, the maximum amount to be raised pursuant to the Private Placement has been increased from $17,500,000 to $26,000,000 (i.e. up to 26,000,000 EIS Shares may be issued at a price of $1.00 per share for gross proceeds of $26,000,000) and the agent's over-allotment option has been eliminated. Stifel Nicolaus Canada Inc. has been retained as the lead agent for the Private Placement on a "commercially reasonable best efforts" basis and the Debt Financing will be with Canadian Western Bank.

The Transactions are intended to serve as the "Qualifying Transaction" of EIS pursuant to the policies of the TSX Venture Exchange (the "Exchange") and are subject to the acceptance of the Exchange. Following completion of the Transactions, EIS will, via Entrec, specialize in the transportation and rigging of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. Entrec provides its services throughout Alberta, Saskatchewan, British Columbia and the Northwest Territories.

It is currently anticipated that the Transactions will close on or about May 12, 2011. For further details on the proposed Transactions, the business of EIS following completion of the Transactions, and other anticipated details with respect to EIS following completion of the Transactions, please see EIS' Filing Statement dated April 28, 2011 on SEDAR at www.sedar.com.

About EIS

EIS is a capital pool company created to identify potential acquisitions of commercially viable businesses and assets that have the potential to generate profits and add shareholder value.

The EIS Shares are listed for trading on the Exchange under the trading symbol "EIE.P" The closing price of the EIS Shares on the Exchange on March 4, 2011, the last trading day before the initial announcement of the Acquisition, was $0.90. Trading in the EIS Shares has remained halted since March 7, 2011 and it is currently anticipated that they will remain halted until closing of the Transactions.

Reader Advisory

Completion of the Transactions is subject to a number of conditions, including but not limited to, Exchange acceptance and, if applicable pursuant to the requirements of the Exchange, shareholder approval. Where applicable, the Transaction cannot close until the required Exchange and shareholder approval is obtained. There can be no assurance that these conditions precedent, or any other conditions precedent, will be satisfied. Further, there can be no assurance that the Transactions will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the filing statement prepared in connection with the Transactions, any information released or received with respect to the Transactions may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Transactions and has neither approved nor disapproved of the contents of this press release.

Forward-Looking Statements

This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements within the meaning of applicable securities laws relating to anticipated closing date for the Transactions. Readers are cautioned to not place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the parties will not proceed with the Transactions, that the ultimate terms of the Transactions will differ from those that currently are contemplated, and that the Transactions will not be successfully completed for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities and shareholders or failure to raise sufficient funds). The statements in this press release are made as of the date of this release. None of EIS, Flint or Conex undertakes any obligation to comment on analyses, expectations or statements made by third-parties in respect of EIS, Flint or Conex or their respective financial or operating results or (as applicable), their securities, except as otherwise required by applicable securities law.

Neither the 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.

Contact Information

  • EIS
    Rod Marlin
    President, CEO and Director