CRS Electronics announces proposed $5 million equity financing

Date Announced: 12 Apr 2011

CRS Electronics Inc. ("CRS" or the "Company"), (TSX VENTURE:LED), an inventor, developer and manufacturer of LED lighting, is pleased to announce that it intends to undertake a "best efforts" brokered private placement of up to 9,100,000 Units at an Offering Price of $0.55 per Unit for gross proceeds to the Company of up to $5,005,000 (the "Offering"). In addition, the Company will grant the Agents an over-allotment option to sell additional Units of the Company, to raise additional gross proceeds of up to $1,000,000 exercisable at any time up to 48 hours prior to the closing of the Offering.

Each Unit will be comprised of one common share of the Company and one half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share of the Company at a price of C$0.65 for a period of 36 months following the closing date of the Offering. At any time after the closing date of the Offering, the warrants will expire and be of no further force or effect if not exercised within 10 days of receipt of notice from the Company that the 20 day volume weighted average trading price of the common shares of the Company on the TSX Venture or such other stock exchange that the common shares may then be listed on is greater than $1.00.

The net proceeds from the Offering will be used to fund the purchase of new production equipment, infrastructure costs, increased staffing, marketing & media expenses, and for general corporate and working capital purposes.

Canaccord Genuity Corp. is acting as lead agent for the Offering on behalf of a syndicate of agents (the "Agents"). Closing of the Offering is anticipated to occur on or about April 19, 2011 and will be conditional upon, among other things, the receipt of all necessary regulatory approvals. All securities issued pursuant to this private placement are subject to a four month hold period from closing.

About CRS

CRS Electronics Inc., an Energy Star and Lighting Facts partner, is a leader in the emerging, rapidly-growing market of high efficiency light-emitting-diode ("LED"), or, solid state lighting ("SSL"). The principal activities of CRS include the development, manufacture and sale, primarily in North America, of indoor lighting such as LED replacement lamps, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED circuit boards. CRS plans to be a major supplier of LED light engines for a variety of applications to be developed by CRS on its own and in conjunction with its customers. CRS recently signed a license agreement with Eveready Battery Company Inc., a subsidiary of Energizer Holdings Inc., for CRS to manufacture a suite of LED lighting products under the brand name Energizer. The initial LED suite of products includes the MR16, PAR 20, PAR 30 and PAR 38. Future products developed by CRS may also be considered by Energizer.

Contact
CRS Electronics Inc. Debbie Bamforth Corporate Communications 905-599-3322

E-mail:debbieb@crselectronics.com

Web Site:

More in Company Newsfeed