CALGARY, Feb. 18 /CNW/ - RS Technologies Inc. ("RS" or the "Company")
(RS - TSX), a technology innovator and manufacturer of advanced
composite products for infrastructure markets, today announced the
closing of its previously announced private placement equity offering.
At closing, a total of 1,300,000 units of RS were issued at a price of
$0.84 per unit, for total gross proceeds of $1.092 million. Each unit
of RS consisted of one common share and one common share purchase
warrant, each warrant entitling the holder thereof to acquire one
common share of RS at a price of $1.03 per share until February 18,
2013. RS issued 743,600 units to arm's length subscribers of RS and
556,400 units to directors and officers of RS. The securities of RS
issued pursuant to the private placement are subject to a hold period
under Canadian securities laws until June 19, 2011.
RS intends to use the proceeds of the offering to fund its working
capital needs to enable it to continue as a going concern until the
middle of April 2011. This will provide RS and its financial advisor,
Macquarie Capital Markets Canada Ltd., with additional time to identify
investors and strategic partners to provide the Company with a long
term solution for its working capital needs. There is no assurance that
RS and its financial advisor will be successful in completing a
transaction with any such investors or strategic partners.
RS is an ISO 9001:2008 certified technology innovator that develops
advanced composite material products for infrastructure markets. The
composite products manufactured using the company's proprietary resins
and processes are typically lighter, more durable and longer-lasting
than competing products made from the traditional building blocks of
wood, steel or concrete. RS's flagship product is its award-winning
RStandard® composite pole. The pole is used as transmission and distribution poles
to carry electric grids and as communication structures for various
uses including wireless networks and microwave communications systems.
For the latest on RS's developments, go to the company's website at www.grouprsi.com.
"RStandard" is a registered trademark of RS.
Certain information set forth in this news release, including
management's assessment of RS's future plans and operations, the
intended use of proceeds of the equity offering, as well as the
anticipated duration of time which the proceeds therefrom will enable
RS to continue as a going concern, contains forward-looking statements
which are based on RS's current internal expectations, estimates,
projections, assumptions and beliefs, which may prove to be incorrect.
Some of the forward-looking statements may be identified by words such
as "expects", "anticipates", "believes", "projects", "plans" and
similar expressions. These statements are not guarantees of future
performance and undue reliance should not be placed on them. Such
forward-looking statements necessarily involve known and unknown risks
and uncertainties, which may cause RS's actual performance and
financial results in future periods to differ materially from any
projections of future performance or results expressed or implied by
such forward-looking statements. These risks and uncertainties include,
among other things, RS not securing additional funds for its working
capital needs to continue as a going concern past the middle of April
2011; RS's lack of revenues and unpredictability of future revenues;
the uncertainty of the profitability of existing and contemplated
products of RS; RS's ability to raise capital on acceptable terms when
needed; RS's ability to attract and retain key employees; competition
from established competitors with greater resources; the uncertainty of
the developing markets in which RS operates; the risks associated with
rapidly changing technology; RS's reliance on third parties to supply
raw materials and the cost of such raw materials; intellectual property
risks, foreign exchange rate fluctuations and changes in general
economic, market and business conditions. Many of these risks and
uncertainties are described in RS's annual information form for the
year ended December 31, 2009 and other documents RS files with the
Canadian securities authorities. The forward-looking statements are
made as of the date hereof and RS assumes no obligation to update or
revise such statements to reflect new events or circumstances except as
required by applicable securities laws.
SOURCE RS Technologies Inc.
For further information:
RS Technologies Inc.
Laurien Abel, Investor Relations and Communications
Tel: (403) 219-8000 Fax: (403) 219-8001