News out......MagIndustries Corp. Announces Terms of Equity Financing
TORONTO, ONTARIO--(Marketwire - June 2, 2009) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
MagIndustries Corp. ("Mag" or the "Company") (TSX VENTURE:MAA) announced
today that, in connection with its previously announced public offering, it
has entered into an underwriting agreement with a syndicate of underwriters
led by Cormark Securities Inc. and including BMO Nesbitt Burns Inc.,
Paradigm Capital Inc., Canaccord Capital Corporation and Jennings Capital
Inc. (collectively, the "Underwriters") to sell 62,150,000 common shares of
the Company (the "Common Shares") at a price of Cdn$0.42 per Share to raise
gross proceeds of Cdn$26,103,000 (the "Offering"). The Common Shares are
being offered by way of a short form prospectus in the provinces of
Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario
and Saskatchewan (the "Qualifying Provinces").
The Underwriters have also been granted an option to purchase up to an
additional 9,322,500 Common Shares on the same terms and conditions as the
Offering, exercisable at any time, in whole or in part, up to 30 days from
the closing of the Offering (the "Over-Allotment Option"). If the
Over-Allotment Option is exercised in full, the total gross proceeds to Mag
will be Cdn$30,018,450.
The Offering is scheduled to close on or about June 16, 2009 and is subject
to certain conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the TSX Venture Exchange.
The net proceeds of the Offering will be applied toward the construction of
Phase I of the Company's potash project near Mengo in the Kouilou province
of the Republic of Congo, including construction of a portion of the
natural gas pipeline, purchasing of materials, services and equipment, and
acceleration of engineering work.
The Common Shares offered have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration or applicable exemption from the
registration requirements. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be any sale
of the Common Shares in any jurisdiction in which such offer, solicitation
or sale would be unlawful.
An amended and restated preliminary short form prospectus (the "preliminary
prospectus") relating to the Offering will be filed today with securities
commissions or similar authorities in each of the Qualifying Provinces.
Copies of the preliminary prospectus may be obtained upon request without
charge from Cormark Securities Inc. When available, a copy of the
preliminary prospectus may also be obtained on SEDAR (www.sedar.com). There
will not be any sale or any acceptance of an offer to buy the securities
until a receipt for the final prospectus has been issued.