ESI Corporate Update
Victoria, British Columbia January 12, 2009 - ESI Environmental Sensors Inc. ("ESI", the "Company") (TSX-V: ESV) is pleased to announce that it has received TSX Venture Exchange (the "Exchange") conditional acceptance for the first tranche of the $5.4 million placement previously announced November 21, 2008. The current tranche totals approximately $2.7 million and has been restructured in the form of a three year convertible debenture (the "Debentures"). The Debentures will be convertible into common shares at a price of $0.30 per common share during years one and two and at a price of $0.35 per common share during year three. The Debentures will accrue interest, payable upon maturity or conversion, at 12% per annum. Interest is also convertible into common shares at the same price and upon the same terms as the Debentures. The Debentures will have a first ranking security interest over the assets of the Company.
The Company anticipates raising up to an additional $3.0 million on similar terms as financial markets stabilize. As previously announced, September 4, 2008, M Partners Inc. will act as Agent and assist the Company in completing the full placement. The private placement is subject to Exchange final acceptance.
Subject to Exchange approval, the Company will pay a finder's fee in connection with the private placement. The net proceeds of the offering will be used for research and development, value engineering, marketing and general working capital purposes.
About ESI
ESI is a leading manufacturer of patented and proprietary solutions for environments where understanding the presence, movement, and/or amount of water are important. Major market sectors include: Agriculture, Golf and Turf, Scientific Research, Civil Engineering and Crude Oil. ESI solutions have been successfully introduced into more than 40 countries to enable customers to optimize their operations by monitoring the presence and movement of water, managing irrigation systems, and monitoring the integrity of landfill covers. Most recently, the Flo·Point™ instrument has been introduced to the Oil industry to measure the volumetric presence of water pumped during crude oil extraction for characterization and optimization of the process. ESI differentiates itself by translating the best technology and science available into practical, easy to use solutions. Irrigation managers, Reservoir Engineers, and Scientists have adopted ESI's products for their accuracy, ease of use, repeatability, and ability to operate in challenging environments. ESI is publicly traded on the TSX Venture Exchange under the symbol "ESV". Further information about ESI may be obtained through the Company's website at www.esisensors.com.
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ESI ENVIRONMENTAL SENSORS INC. |
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THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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