ESI Corporate Update
Victoria, British Columbia, October 28, 2013 - E.S.I. Environmental Sensors Inc. ("ESI" or the "Company"), TSX-V: ESV is pleased to announce that, in addition to the previous announcement of a private placement for gross proceeds of up to $350,000, the Company is now increasing the total available under the private placement up to $650,000. It is likely that the placement will close in tranches. The total non-brokered private placement will now be up to 13,000,000 units (“Units”) at $0.05 per Unit to raise gross proceeds of up to CAD$650,000. Each Unit will consist of one common share and one common share purchase warrant (a “Warrant”). Each Warrant will be exercisable into an additional common share for a period of three years from the closing date. The Warrants will be exercisable at a price of $0.10 for the first year following the closing of the transaction, $0.15 for the second year following closing, and $0.20 for the third year following closing. As mentioned above, it is anticipated that there will be more than one closing date.
The Private Placement is subject to TSX Venture Exchange (“Exchange”) acceptance. The proceeds from this financing will be used for general working capital purposes. Subject to Exchange approval, the Company will pay finders’ fees in connection with the private placement.
The Company’s Flo•Point™ instrument was designed for the oil industry to measure the volumetric presence of water pumped during crude oil extraction for characterization and optimization of the production process. This technology was deployed by ESI for approximately seven years, most recently in 2009, however, since that time the Company has not produced any new units. Over the past months the Company has been in discussions on the re-launch of the Flo•Point™ program with a partner in the Canadian oil industry. Those discussions have now reached a point where an agreement on a joint development program for a next generation Flo•Point™ tool, known in the oil industry as a water cut sensor, is anticipated in the coming weeks. The development program will involve expertise based at ESI in conjunction with that of a partner in the Canadian oil industry specializing in enhanced oil recovery, and will also include the full co-operation of a significant lead customer in Canadian oil production. Efforts are also under way to involve a recognized governmental research institution. In order to succeed in launching this development program, once an agreement is in place, the Company will need to announce a future financing.
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 production. 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. The Company’s Flo•Point™ instrument was designed for 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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