NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WINNIPEG, September 1, 2010 � Empire Industries Ltd. (TSX-V: EIL) today announced that it intends to complete a non-brokered private placement of a minimum of 3,571,428 Units and a maximum of 10,714,285 Units at a price of $0.07 per Unit for gross proceeds of a minimum of $250,000 and a maximum of $750,000. Each Unit will consist of one common share, one-half of one Warrant A, and one-half of one Warrant B. Each whole Warrant A will entitle the holder to purchase one additional common share at a price of $0.10 per share for a period of 12 months from the closing of the offering. Each whole Warrant B will entitle the holder to purchase one additional common share at a price of $0.125 per share for a period of 24 months from the closing of the offering.
Proceeds from the offering will be used for working capital purposes. Completion of the offering is subject to TSXV approval.
Certain insiders of the Company, as well as accredited investors, may participate in the offering. All securities issued under the offering will be subject to a four-month statutory or contractual hold period.
Incentive Stock Option Grants
The Company also announced that it has granted 1,550,000 incentive stock options to its independent directors and senior managers under the terms of its Stock Option Plan. The options have been granted for a seven year term, vesting immediately, at an exercise price of $0.09. These grants are subject to TSXV approval.