Cryopak Announces Bridge Loan and Proposed Private Placement.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 29, 2003 Cryopak Industries Inc. (TSX-V: CII CII Confederation of Indian Industry CII Chartered Insurance Institute (UK) CII Construction Industry Institute (University of Texas) CII Council of Institutional Investors ; OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CYPKF) announces that it has secured a C$500,000 bridge loan from an affiliate of Claridge Inc. The bridge loan will be made available immediately, bears interest at 12.5% per annum Per annum Yearly. , and will be due and payable on demand after March 30, 2004, unless repaid earlier. The bridge loan will be secured by a charge against the Company's assets which would rank behind the Company's existing credit facilities with HSBC Bank Canada HSBC Bank Canada (Traditional Chinese: 加拿大滙豐銀行; Pinyin: ), formerly the Hongkong Bank of Canada . No bonus shares, warrants, finders fees or commissions, other than a 2.5% placement fee, will be payable in connection with this loan. To address the Company's longer term financing needs, the Company has also received commitments with respect to a non-brokered private placement to raise up to C$1.5 million, subject to normal regulatory approval. Under the terms of the proposed private placement, the Company plans to issue units at a price of C$0.28 per Unit. Each Unit will be comprised of one Common Share and one half of a Common Share Purchase Warrant, each Warrant entitling the holder to acquire one additional Common Share at a price of C$0.37 per share for a period of 24 months from the date of closing. It is anticipated that the Common Shares and Warrants will be subject to a four-month hold period. The Company anticipates completion of this private placement in October, 2003. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the private placement are expected to be used for general working capital purposes and to repay the bridge loan. A finder's fee Finder's fee A fee a person or company charges for service as an intermediary in a transaction. finder's fee The charge levied by a person or firm for putting together a deal. of up to 5% will be payable in connection with the private placement. The bridge loan and a portion of the private placement financing was made in conjunction with the Company's settlement of a dispute that arose with the Claridge Inc. affiliate regarding the February, 2003 private placement. Subject to regulatory approval, the Company anticipates issuing up to 500,000 Common Shares to settle that dispute. About Cryopak Cryopak Industries Inc. develops, manufactures and markets quality temperature-controlling products such as the premium patented Cryopak Flexible Ice(TM) Blanket, as well as flexible hot and cold compresses, gel packs, and instant hot and cold packs. ON BEHALF OF THE BOARD OF DIRECTORS John Morgan, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ from those expressed or implied by such forward-looking statements. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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