IBC Advanced arranges offering of up to $10.35-milIBC Advanced arranges offering of up to $10.35-million
2010-03-16 16:29 ET - News Release
Mr. Ian Tootill reports
IBC ADVANCED ALLOYS CORP. RECEIVES RECEIPT FOR FINAL SHORT-FORM PROSPECTUS
IBC Advanced Alloys Corp. has filed and obtained a receipt for its short-form prospectus with the securities regulatory authorities in the provinces of British Columbia, Alberta and Ontario to qualify the securities offered under the prospectus. The company has also entered into an agency agreement with a syndicate of agents led by Union Securities Ltd. and Pope & Company Ltd., under which the agents have agreed to sell, on a best efforts basis, up to 60,882,354 units, at a price of 17 cents per unit for aggregate gross proceeds of up to $10.35-million after exercising an overallotment option.
Each unit is priced at 17 cents and consists of one common share of IBC and one-half of one common share purchase warrant exercisable at 25 cents. Each warrant entitles the holder to purchase one common share of IBC for a period of 24 months (subject to acceleration) following the date of closing of the offering, which is scheduled to occur on or before March 23, 2010, or such other date as may be agreed upon by the company and the agents.
For their services rendered in connection with the offering, the agents will receive a cash commission equal to 7 per cent of the gross proceeds raised under the offering and broker warrants exercisable to acquire that number of units of the company, having the same terms as the units, at a price of 17 cents per agents' unit as is equal to 7 per cent of the total number of units sold under the offering, at any time until the date which is 24 months after the closing of the offering. Each agents' unit comprises one common share and one-half of one share purchase warrant. Each agents' warrant is exercisable into a common share on the same terms and conditions as the warrants that comprise the units.
The net proceeds from the offering will be used to finance the previously announced acquisition of Beralcast Corp., new business development initiatives, further exploration of mineral properties and for general working capital purposes, as described in the prospectus.
We seek Safe Harbor.