CRS Electronics Inc V.LED

It's a done deal

[cpa666]

CRS Electronics Inc. ("CRS" or the "Company"), (TSX VENTURE:LED), a developer and manufacturer of LED lighting, is pleased to announce that the proposed private placement (the "Private Placement") by the Company to CJL Holding Inc. (the "Investor"), previously announced on May 1, 2012 has closed into escrow pending final approval by the TSX Venture Exchange. On May 22nd the Company received the second non-refundable deposit of $700,000 bringing the total non-refundable deposits on the Private Placement received by the Company to $1.5 million.

The Private Placement will be released from escrow within one business day of receipt by the escrow agent of a written notice by the Company of the final written approval of the TSX-V for the Private Placement. The balance of the proceeds in the amount of $7,380,000 is expected to be released from escrow to the Company at that time. The final TSX-V approval is pending receipt of satisfactory background searches in respect of the Investor and the directors and officers to be appointed by the Investor.

The Company has also issued 2,389,167 common share purchase warrants (the "Warrants") in trust to Parklea Capital Inc. ("Parklea") as compensation for Parklea acting as special advisor to the Chief Executive Officer and the Board of Directors of the Company. The Warrants will be held in escrow pending the closing of the Private Placement and the common shares issued upon the conversion of the Warrants will be subject to a four month hold period commencing from the date they are released from escrow. The Warrants are convertible into common shares of the Company at a price of
.2921 per common share for a period of 5 years from the date of issue.