ESI Corporate Update
Victoria, British Columbia, November 4, 2010 – E.S.I. Environmental Sensors Inc. ("ESI" or the "Company"), TSX-V: ESV is pleased to announce it has received TSX Venture Exchange final acceptance of the non-brokered private placement announced on September 8, 2010. The private placement consisting of 15,000,000 Units at $0.05 per Unit was fully subscribed for gross proceeds of $750,000. The Company has issued 15,000,000 common shares and 15,000,000 warrants. Each Warrant will be exercisable into an additional common share at a price of $0.10 until November 4, 2011.
The proceeds from this financing are being used to hire new senior management and marketing personnel, expand manufacturing to meet existing and anticipated demand for ESI's moisture monitoring, oil water-cut monitoring and associated wireless systems, and to further develop the next generation of products for the oil industry. In addition, a portion of the proceeds will be used for general working capital purposes. The Company has paid finders' fees in connection with the private placement.
On September 8, 2010, the Company also announced that an agreement was reached with Avis Financial Corporation ("Avis Financial") to convert a current demand loan on the Company's balance sheet into a convertible debenture. The principal amount of the debt owed to Avis Financial is $1.5 million. The new debenture is to be convertible into common shares for a period of one year from the closing date. In addition, the debenture is to bear interest at a rate of 12%. Interest will be convertible into common shares at market price at the time of conversion. Conversion of this debenture could result in the creation of a new control person and a change in control of the Company. At the Company's Annual General Meeting on September 29, 2010, the Company received disinterested shareholder approval for the potential creation of a new control person, namely Avis Financial. The Company has submitted this transaction to the Exchange for acceptance. The Company will issue a further press release once this transaction has completed.
About Avis Financial Corporation
Avis Financial is an innovative, integrated business development engine that assists small and medium-sized enterprises (SMEs) in realizing their full potential. Involved at every step of the way, Avis Financial provides a truly comprehensive package of services to its portfolio companies, who further benefit from a high-profile brand, a major international network and extensive business expertise. Avis Financial's services include capital and operational restructuring, business development and placement preparation. To ensure that its portfolio companies receive support at every level, Avis Financial works with a large network of affiliates providing business and capital services.
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.esica.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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