Epic Data International Inc.

Epic Data International Inc.

June 14, 2012 09:30 ET

Epic Data Announces $2.0 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 14, 2012) -


Epic Data International Inc. (the "Company") (TSX VENTURE:EKD), a provider of manufacturing execution systems (MES), today announced it intends to raise up to an aggregate of $2,000,000 by way of a non-brokered private placement of a combination of common shares at a price of $0.20 per share and secured convertible redeemable debentures (the "Debentures"), which are convertible into common shares of the Company at $0.20 per share.

The Debentures will bear interest at a rate of prime plus 2% per annum, will be payable monthly in arrears and will be due on the later of June 30, 2016 or 4 years from the date of closing of the private placement (the "Maturity Date"). The Debentures may be redeemed at face value in whole or in part from time to time at the option of the Company on the date (the "Redemption Date") that is not more than 60 days and not less than 30 days following prior written notice to the holder. The Debentures may be converted into fully paid common shares of the Company at the sole option of the holder at any time prior to the close of business on the day which is the earlier of the Maturity Date or the Redemption Date at $0.20 per share. The Debentures will be secured by a second ranking charge against all the assets of the Company.

The proceeds will be used to market the Company's manufacturing operations management software products, to fund product development and for general working capital purposes.

Certain insiders of the Company may acquire securities under the private placement. That portion of the private placement that is sold to insiders may be considered a "related party transaction" as such term is defined by Canadian securities legislation and the policies of the TSX Venture Exchange (the "Exchange"). The Company anticipates that it will be able to rely on exemptions to the shareholder approval and valuation requirements imposed by Canadian securities legislation and the policies of the Exchange in respect of the related party transactions.

All securities issued pursuant to the private placement are subject to a four month hold period following the closing date. The closing of the private placement is subject to the acceptance of the Exchange.

Grant of Stock Options

The Company announces the granting of 100,000 stock options to a senior executive. The term of the options will be 7 years from the date of grant and the exercise price will be $0.10 per share.

About Epic Data

Epic Data International Inc. is a provider of manufacturing execution and warehouse management solutions. For 36 years Epic Data has delivered real-time data collection and production information to discrete manufacturers through turnkey data collection, warehouse management and lean manufacturing operations management solutions. Defense contractors, aerospace, automotive, high technology and industrial equipment & machinery manufacturers, employ Epic Data solutions to optimize the ROI of their manufacturing IT infrastructure investments and operations by increasing plant productivity, materials visibility and production velocity. Customers include Hawker Beechcraft, Lockheed Martin, Bell Helicopter, Komatsu, Bombardier Learjet, CAE Inc., Kingfisher (B&Q) plc, Joy Mining Machinery, Cobham Defence Communications Ltd., GE Aircraft Engine, Contour Premium Aircraft Seating, McBride plc, Phoenix Contact, Rolls-Royce and Volvo.

For more information about Epic Data please visit our website at www.epicdata.com or www.epicdatachina.com.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any State laws and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Caution Regarding Forward-looking Statements

In this document and in other documents filed with Canadian regulatory authorities or in other communications, the Company may from time to time make written or oral forward-looking statements within the meaning of applicable securities legislation, including statements regarding the closing of the financing and the Company's business plans and financial objectives. These statements typically use words such as prospects, believe, estimate, forecast, project, expect, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the forecasts, projections and other forward-looking statements will not be achieved or will prove inaccurate. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. The Company cautions readers against placing undue reliance on forward-looking statements when making decisions, as the actual results could differ considerably from the opinions, plans, objectives, expectations, forecasts, estimates and intentions expressed in such forward-looking statements due to various material factors. Among other things, these factors include fiscal and economic policies, changes in interest and foreign exchange rates, and general economic conditions, legislative and regulatory developments, competition and access to capital. The Company further cautions that the foregoing list of factors is not exhaustive. For more information on the risks, uncertainties and assumptions that would cause the Company's actual results to differ from current expectations, please also refer to the Company's public filings available at www.sedar.com. The Company does not undertake to update any forward-looking statements, whether oral or written, made by itself or on its behalf, except to the extent required by securities regulations.

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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