Empire Industries Ltd.
TSX VENTURE : EIL

Empire Industries Ltd.

February 01, 2011 07:00 ET

Empire Industries Closes First Tranche of Private Placement

WINNIPEG, MANITOBA--(Marketwire - Feb. 1, 2011) -

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

Empire Industries Ltd. ("Empire" or the "Company") (TSX VENTURE:EIL) announces that on January 31, 2011 it completed the first of a series of closings for a non-brokered private placement of Units previously announced on December 23, 2010 and updated on January 27, 2011. The first closing placed 14,000,000 Units (the "Units") at a price of $0.05 per Unit for gross proceeds of $700,000 (the "First Closing"). 

Each Unit consisted of one (1) common share in the capital of the Company (the "Common Shares") and one-half Common Share Purchase Warrant (each whole Common Share Purchase Warrant a "Warrant"). Each whole Warrant entitles the holder to purchase one (1) Common Share of the Company at an exercise price of $0.10 until January 31, 2013. The Common Shares, Warrants and Common Shares issuable upon exercise of the Warrants are subject to a four month hold period.

The Company anticipates closing the balance of the Private Placement for Units and Convertible Debentures on or before February 14, 2011.

About Empire Industries

Empire Industries is based primarily in western Canada and operates in two market segments: Specialized Engineered Product Manufacturing and Steel Fabrication. It also participates in a strategic partnership in the industrial maintenance services sector through its equity stake in ACE Industrial Services, based in Fort McMurray. The Company's business operations are focused on the infrastructure, commercial and industrial construction marketplace of western Canada and select niche export markets internationally. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.

Reader Advisory

This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.

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.

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