New Issue: EYI Industries settles $4.5 million private placement of convertibles

By Sheri Kasprzak

New York, May 1 - EYI Industries, Inc. has concluded a $4.5 million private placement of convertible debentures with Cornell Capital Partners, LP.

The debentures are due April 24, 2009, bear interest at 10% annually and are convertible into common shares at the lesser of $0.06 or 80% of the lowest volume weighted average price for the five trading days before conversion.

The first $1.5 million was funded on April 29. Another $1.5 million will be funded two days after a registration statement is filed with the Securities and Exchange Commission and the remaining $1.5 million will be funded once the statement is declared effective.

Cornell also received five-year warrants for 124,062,678 shares. A total of 10,416,650 warrants are exercisable at $0.02 each; 10,416,650 warrants are exercisable at $0.03 each; 13,888,866 warrants are exercisable at $0.04 each; 10,416,650 warrants are exercisable at $0.05 each; 8,333,320 warrants are exercisable at $0.06 each; 6,944,433 warrants at $0.07 each; 5,952,371 at $0.09 each; 10 million at $0.10 each; 19 million at $0.11 each; 8,181,818 at $0.12 each; 7.5 million at $0.15 each; 3,333,333 at $0.20 each; 2.5 million at $0.25 each; 2 million at $0.30 each; 1,666,666 at $0.35 each; 1,428,571 at $0.40 each; and 1.25 million at $0.40 each.

Based in Burnaby, B.C., EYI develops products that reduce toxins in drinking water.

Issuer:	EYI Industries, Inc.
Issue:	Convertible debentures
Amount:	$4.5 million
Maturity:	April 24, 2009
Coupon:	10%
Price:	Par
Yield:	10%
Conversion price:	The lesser of $0.06 or 80% of the lowest VWAP for the five trading days before conversion
Warrants:	For 124,062,678 shares
Warrant expiration:	Five years
Warrant strike price:	10,416,650 at $0.02 each; 10,416,650 at $0.03 each; 13,888,866 at $0.04 each; 10,416,650 at $0.05 each; 8,333,320 at $0.06 each; 6,944,433 at $0.07 each; 5,952,371 at $0.09 each; 10 million at $0.10 each; 19 million at $0.11 each; 8,181,818 at $0.12 each; 7.5 million at $0.15 each; 3,333,333 at $0.20 each; 2.5 million at $0.25 each; 2 million at $0.30 each; 1,666,666 at $0.35 each; 1,428,571 at $0.40 each; and 1.25 million at $0.40 each
Investor:	Cornell Capital Partners, LP
Settlement date:	April 24
Stock symbol:	OTCBB: EYII
Stock price:	$0.037 at close April 24

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