June 12, 2007 10:19 ET

Flagship Industries Advised of Early Warning Report by Frank Giustra, Fiore Capital and Omega Holdings Ltd.

MARKHAM, ONTARIO--(Marketwire - June 12, 2007) - Flagship Industries Inc. (TSX VENTURE:FII) ("Flagship" or the "Company") announces that it has been advised that Frank Giustra and two entities controlled by him, Fiore Capital and Omega Holdings Ltd., have acquired common shares ("Common Shares") of Flagship Industries Inc. ("Flagship", or the "Company") (TSX VENTURE:FII) pursuant to a private transaction (the "Transaction") and units of the Company ("Units") pursuant to Flagship's recently completed private placement (the "Financing"). Each Unit consisted of one Common Share and one common share purchase warrant of the Company (a "Warrant"), each Warrant being exercisable to acquire one Common Share at a price of $0.10 per share until June 1, 2009.

Pursuant to the Transaction and Financing, they acquired beneficial ownership and control over an aggregate of: (i) 10,765,000 Common Shares, representing approximately 14.83% of the Company's issued and outstanding Common Shares; and (ii) 3,265,000 Warrants, representing approximately 8.16% of the Company's issued and outstanding Warrants. If the Warrants were to be exercised, they would beneficially own and control 14,030,000 Common Shares representing approximately 18.50% of the Company's Common Shares on a partially diluted basis.

Mr. Giustra, Fiore and Omega have acquired the securities of the Company for investment purposes. They have no present intention of acquiring other securities of the Company or disposing of any of the securities of the Company each of them currently holds. For further information regarding the acquisition of securities of the Company by Mr. Giustra, Fiore or Omega, or to obtain a copy of the early warning report in respect of this transaction, please contact Christy Louth at (604) 609-6112. A copy of the early warning report will also be available under the Company's profile on SEDAR at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Flagship Industries Inc.
    Suzanne Blythe
    (905) 477-7689
    (905) 479-9870 (FAX)