In connection with the closing of the acquisition of Drayton International, the escrow release conditions under the Offering have been satisfied and all 751,445 subscription receipts issued at a price of US$1.73 per subscription receipt have been automatically exchanged, without further action or additional consideration, for an equal number of common shares and non-transferable common share purchase warrants of the Company. Each warrant is exercisable into one common share for a period of 36 months at an exercise price of US$2.16 per share, subject to acceleration in accordance with the terms of the warrants.

The common shares and warrants issued under the Offering remain subject to a statutory hold period in Canada of four months and one day from the closing of the Offering and are "restricted securities" within the meaning of Rule 144(a)(3) under the U.S. Securities Act of 1933, as amended. Subscribers are also subject to a lock-up pursuant to which they have agreed not to sell, transfer, dispose of, or otherwise deal in their shares or warrants for four months following closing of the Transaction.

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