Seprotech Completes Private Placement

    




 OTTAWA, Sept. 22, 2011 /CNW/ - Seprotech Systems Incorporated  advises that it has  completed its previously announced non-brokered private placement  offering (the "Offering") for the maximum targeted gross proceeds of  $600,000. The Offering, which was available only to accredited  investors was for 12,000,000 common shares at $0.05 per share. 

 Also as previously announced, companies controlled by an Insider of the  Corporation, Jordan Grant, Chairman and CEO and a director of the  Corporation, participated in the Offering for 2,000,000 common shares  representing 16.7% of the Offering.  In addition, Mr William Touzel, a  director of the Corporation purchased 500,000 common shares  representing 4.2% of the Offering. Mr. Grant's companies and Mr. Touzel  each participated in the Offering on the same terms and conditions as  the other subscribers. The disclosure relating to the related party  transaction was identified in the Corporation's press release on  September 14, 2011. The information is being filed less than 21 days  prior to the closing because the shorter period was necessary in order  to permit the Corporation to close the Offering, including the related  party transaction, in a timeframe consistent with usual market practice  for transactions of this nature. 

 The common shares issued pursuant to the Offering will be subject to a  four month hold period from the closing date of the Offering. 

 Proceeds from the private placement will be utilized to fund production  of several new contracts recently awarded to the Corporation, as well  as funding overhead pending commencement of cash flow from such  contracts, and for repayment of normal course trade and bank debt. 

 Chairman and CEO Jordan Grant stated, "We are making steady progress in  our turnaround plan, as evidenced by the various press releases we've  issued over the past several months, which has made this offering  possible. We appreciate the confidence shown in the Corporation by the  participants in this placement, who include a combination of existing  and new shareholders."  

 About Seprotech: 

 Seprotech is a provider of pre-engineered water and wastewater treatment  solutions to the municipal/land development, resource sector and  military market place, including Reverse Osmosis water purification  systems, ROTORDISK® biological sewage treatment package plants and  CrystalBlue™ membrane-based water recycling systems. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release.  The TSX Venture Exchange has neither approved nor disapproved of the  information contained herein. Some of the statements in this press  release, including those relating to the Corporation's strategies and  other statements, the private placement financing activities of the  Corporation, the use of proceeds of the private placement financing,  that are predictive in nature,  that depend upon or refer to future  events or conditions, or that include words such as "expects",  "anticipates", "intends", "plans", "believes", "estimates" or similar  expressions, are forward-looking statements within the meaning of  securities laws. Forward-looking statements include, without  limitation, the information concerning possible or assumed future  results of operations of the Corporation. These statements are not  historical facts but instead represent only the Corporation's  expectations, estimates and projections regarding future events. The  Corporation does not undertake any obligation to update or release any  revisions to these forward-looking statements to reflect events or  circumstances after the date of this presentation or to reflect the  occurrence of unanticipated events, except as required by law. 

Seprotech Systems Incorporated


CONTACT:  Mr. Ian W. Malone, CFOTel: [phone]Fax: [phone] 


    

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