MPAC Industries Corporation

MPAC Industries Corporation

March 16, 2009 20:34 ET

MPAC Industries Corporation: Corporate Update and Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 16, 2009) - MPAC Industries Corporation ("MPAC" or the "Company") (TSX VENTURE:MPN) is pleased to provide its shareholders and the investment community with a corporate update concerning the coal refining pilot plant (the "Pilot Plant") located in the City of Soma in Turkey.


The Company regrets to advise that due to the passing of his beloved wife, Blain Archer has resigned from all his public directorships to spend more time with his children.

The Company has extended its condolences to Blain and his family and has expressed a strong interest in his rejoining the Board in the future.

In the interim, the Company is seeking to replace Blain with an individual who has significant business experience and a background in accounting and/or finance and an interest in serving the shareholders of the Company.


To date, the Company has raised $53,000 and has changed the previously announced Private Placement mechanism to convertible debentures. The Company has authorized borrowing of up to $250,000 through the convertible debentures bearing interest at 6% per annum, maturing January 31, 2011. The debentures are convertible into units comprised of one common share and one common share purchase warrant on the basis of one unit for every $0.05 of principal sum owing, and warrants are exercisable until August 31, 2009. Interest accrues until the earlier of the date of conversion and the expiry of the restricted trading period, and will be converted into units at the closing price of the Company's stock on the date of conversion. No interest is payable after the expiry of the restricted trading period. If the principal amount is converted, the holder is entitled to an interest bonus equal to the principal amount, and will be deemed to have exercised the number of warrants otherwise issuable on conversion, and to have fully paid for those warrants with the interest bonus.

In addition, the Company is in discussions with funding sources in Vancouver, British Columbia and London, United Kingdom for a significant cash infusion in order to springboard the Company's expansion plans during a downturn in the construction costs of refinery infrastructure.


The Company's Canadian Contractor has returned overseas in order to be closer to Turkey and in anticipation of the Company raising the additional capital required to get the Soma Pilot Plant retrofitted and into production.

2008 AUDIT

The firm of BDO Dunwoody LLP, Chartered Accountants has begun their audit of the Company's financial statements for the 2008 fiscal year.


As always, the Company very much appreciates the ongoing support of its existing shareholders and the continued interest of the investment community in the business affairs of MPAC.


J. RICHARD W. HALL, President & CEO

This News Release contains forward-looking statements, which are based on MPAC Industries Corporation current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. The forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Actual results may differ materially as a result of any number of factors and uncertainties, many of which factors are beyond the Company's control. MPAC Industries Corporation undertakes no obligation to revise any forward-looking statements except as required by applicable securities laws.

The TSX Venture Exchange neither approved nor disapproved the contents of this News Release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.

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