WINNIPEG, Tuesday, February 1, 2011 – Empire Industries Ltd. (“Empire” or the “Company”) (TSX-V: EIL) announces that on January 31, 2011 it completed the first of a series of closings for a non-brokered private placement of Units previously announced on December 23, 2010 and updated on January 27, 2011. The first closing placed 14,000,000 Units (the “Units”) at a price of $0.05 per Unit for gross proceeds of $700,000 (the “First Closing”).
Each Unit consisted of one (1) common share in the capital of the Company (the “Common Shares”) and one-half Common Share Purchase Warrant (each whole Common Share Purchase Warrant a “Warrant”). Each whole Warrant entitles the holder to purchase one (1) Common Share of the Company at an exercise price of $0.10 until January 31, 2013. The Common Shares, Warrants and Common Shares issuable upon exercise of the Warrants are subject to a four month hold period.
The Company anticipates closing the balance of the Private Placement for Units and Convertible Debentures on or before February 14, 2011.