CRS Electronics Receives Interest Free Loan From Government of Canada
Tuesday, January 19th 2010 9:03:08am
(January 18 2010, Welland ON) - CRS Electronics Inc. ("CRS"), (TSX-V:LED), an inventor, developer and manufacturer of LED lighting, is pleased to report that the Southern Ontario Development Program (SODP) has granted an interest free loan to the Company to a maximum amount of $825,595. The Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario, made the announcement at the Company's headquarters in Welland today.
"Our government is committed to creating jobs and supporting the people, communities and businesses of southern Ontario," said Minister Goodyear. "This investment will help CRS Electronics conduct new research and expand their business, to remain a leader in the production of energy-efficient lighting."
"We are very excited to receive recognition and support from the federal government to assist with CRS' growth strategy," said Scott Riesebosch, President of CRS Electronics Inc. "Products manufactured in Ontario, like our best-in-class LED lighting solutions, make a significant contribution to economic development in areas like Welland. We are thrilled to be a part of the growth in our community."
A maximum principal of $825,595 may be drawn on the loan facility. The specific terms of the loan agreement have not been finalized. Generally SODP funding is based on 50% of certain approved capital expenditures and 75% of certain marketing costs, research and development costs, and legal cost to file patents. The SODP loans are non-interest bearing with a repayment term of five years. The Company plans to purchase additional production and research equipment. The funding will also assist the Company to file patents and continue to develop new LED products, conduct market research and market it's LED based lighting products.
The Southern Ontario Development Program promotes economic development, economic diversification, job creation and sustainable communities in Southern Ontario. The SODP is just one in a series of initiatives introduced in the government's Economic Action Plan designed to address the short-term effects of the economic decline on communities across Canada, while preparing communities for long-term growth. Overall funding for the SODP is $100 million in 2009-10.
For more information on the SODP, please visit the FedDev Ontario website at www.southernontario.gc.ca or call 1-866-593-5505. For more information on Canada's Economic Action Plan initiatives, visit www.actionplan.gc.ca.
CRS is a leader in the emerging, rapidly-growing market of high efficiency light-emitting-diode ("LED"), or, solid state lighting ("SSL"). The principal activities of CRS include the development, manufacture and sale, primarily in North America, of indoor and outdoor lighting such as LED replacement lamps, LED streetlights, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED circuit boards. CRS is a well-established supplier to both the school bus industry and the LED contract manufacturing industry, providing a stable and growing revenue source. CRS plans to be a major supplier of LED light engines for a variety of applications to be developed by CRS on its own and in conjunction with its customers. The Company currently sells one of the very few replacement LED MR16 lights capable of replacing a halogen 50 watt MR16.
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Certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in CRS's public filings, CRS's future outlook and anticipated events or results and can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to capital and operating expenditures, economic conditions, availability of markets for products, availability to develop and manufacture products, availability of sufficient financing, receipt of approvals, satisfaction of escrow requirements, satisfaction of closing conditions, obtaining debt financing for capital expenditures, and any and all other timing, development, operational, financial, economic, legal, regulatory and/or political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other CRS filings, and include the effect of capital market conditions and other factors on capital availability and the ability to complete additional closings; sufficient working capital for development and operations, access to adequate services and supplies, availability of markets for products, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and other sources of financing and associated cost of funds, availability of a qualified work force, availability of manufacturing equipment, no material changes to the tax and regulatory regime and the ultimate ability execute its business plan on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other CRS filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, CRS does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.