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Thu, March 17, 2011
Wed, March 16, 2011

Enssolutions Group Inc. Announces Debenture Financing


Published on 2011-03-16 14:35:33 - Market Wire
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TORONTO, March 16 /CNW/ - Enssolutions Group Inc. ("Enssolutions" or the "Corporation) (TSXV: ENV) announced today that it has secured financing of unsecured debentures ("Debentures") in the aggregate amount of $300,000 (the "Financing"). The Debentures bear interest at a rate of 13.33% per annum and are payable by Enssolutions on February 28, 2014. As part of the Financing, the Corporation will issue 1,200,000 common shares to the debenture holders at a price of $0.05 per share. 

The securities being issued are all subject to a four-month hold period in accordance with applicable Canadian securities laws.

The Corporation will use proceeds from the Debentures for continuing working capital purposes and general corporate services. The closing of the Financing is subject to regulatory approval from the TSX Venture Exchange Inc.

Certain insiders of Enssolutions participated in the Financing.  Participation of these insiders constituted a "related party transaction" within the meaning of Multilateral Instrument 61-101 ("MI 61-101"). However, the Financing is exempt from the formal valuation and majority of the minority shareholders approval set out in MI 61-101 since, at the time the transaction was agreed to:  (i) the securities of Enssolutions were not listed or quoted on one of the exchanges or markets specifically identified in MI 61-101; (ii)  neither the fair market value of the securities to be distributed in the Financing nor the consideration to be received for those securities, insofar as the transactions involves interested parties, exceeded $2,500,000; and (iii) Enssolutions has one or more independent directors who are not employees of Enssolutions; and, at least, two thirds of said independent directors approved the transaction, as per sections 5.5 and 5.7 of MI 61-101.  Enssolutions has not provided notice of material change within a minimum of 21 days before the closing of the Financing, as stipulated in MI 61-101, given that the proceeds of the Financing will address immediate working capital needs of Enssolutions.

ABOUT ENSSOLUTIONS

Enssolutions manufactures, distributes and applies environmentally responsible products to meet a wide variety of industrial and commercial market demands. Enssolutions provides engineered environmental solutions for mine tailings control, process dust and erosion control, granular stabilization, road construction/maintenance and stockpile sealing. It has production facilities in Hamilton, Ontario and Phoenix, Arizona that service some of North America's largest mining, steel, cement, and road construction/maintenance companies as well as numerous public road authorities.

For more information on Enssolutions, please visit [ www.enssolutions.com ].

FORWARD LOOKING STATEMENTS

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Enssolutions assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable Enssolutions. Additional information identifying risks and uncertainties is contained in filings by Enssolutions with the Canadian securities regulators, which filings are available at [ www.sedar.com ].

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