April 17, 2007 14:32 ET

Flagship Industries Announces Share Split and Financing

MARKHAM, ONTARIO--(CCNMatthews - April 17, 2007) - Flagship Industries Inc. (TSX VENTURE:FII) announces that it intends to conduct a split of its shares on the basis of five post-split shares for every one pre-split share. The company is also pleased to announce that it has arranged a non-brokered private placement of 8,000,000 units (40,000,000 units post-split) at a price of $0.25 per unit ($0.05 per unit post-split) for gross proceeds to the company of $2,000,000. Each unit will consist of one common share and one common share purchase warrant, each warrant being exercisable to acquire one common share at a price of $0.50 per share ($0.10 per share post-split) for a period of two years from the closing of the private placement. A 5% finder's fee of 400,000 units (2,000,000 units post-split) will be paid to Endeavour Financial Ltd. Following the share split and private placement, the company will have approximately 72,566,375 common shares issued and outstanding.

The share split and private placement are being undertaken by the company in connection with its ongoing strategic review process as announced on March 23, 2007. Proceeds from the financing will be used by the company to further strategic alternatives to enhance shareholder value. The split of the company's shares and the financing are subject to the approval of the TSX Venture Exchange.

In addition, the company announces that it has accepted the resignation of Cynthia J. Devine as a director. The company would like to thank Ms. Devine for her years of service to the company.

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)