MagIndustries Corp.

MagIndustries Corp.

December 19, 2007 17:20 ET

MagIndustries Completes US$37.8 Million Debt Financing


MagIndustries Corp. ("MagIndustries" or the "Company") (TSX VENTURE:MAA) is pleased to announce that it has completed the previously announced offering of units for total gross proceeds of US$37,845,000. The financing consisted of an offering of units with each Unit consisting of one note (the "Notes") in the principal amount of US$1,000 and 175 common share purchase warrants (the "Warrants"). The Notes will bear interest at the rate of 11.0% per year, payable semi-annually and will mature five years and one day following closing. Each Warrant will entitle the holder to purchase one additional common share of the Company at a price of C$2.40 per share for five years after closing. The Notes and Warrants are subject to a four month hold period which will expire on April 20, 2008.

The offering was co-led by Cormark Securities Inc. and Jennings Capital Inc. and the syndicate included Paradigm Capital Inc., Desjardins Securities Inc. and Ambrian Capital plc. The Agents received a cash commission of 4.0% of the principal amount of the Notes sold under the Offering.

The net proceeds of the offering will be used to fund the completion of MagForestry's wood chip mill and harvesting equipment modernization, MagEnergy's refurbishment projects at the INGA II hydroelectric facility and for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements. 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 the securities in any State in which such offer, solicitation or sale would be unlawful.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX Venture Exchange and trades in Canadian currency under the symbol "MAA". The Company has 193,924,016 shares outstanding on an undiluted basis. More information on the Company is available at its website,

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing financial market conditions, commodity price fluctuations, technology risks, local government regulations or political unrest and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

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

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