Rare Earth Industries Ltd.
TSX VENTURE :
RND
June 12, 2012 18:25 ET
Rare Earth Target Ackroo Announces Financing Engagement
MoneyBar Rewards Inc., operating as Ackroo, Signs Financing Engagement with M Partners Inc. and Paradigm Capital Inc.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2012) - Rare Earth Industries Ltd. (the "Company" or "RND") (TSX VENTURE:RND) is pleased to announce that in connection with the Company's previously announced letter of intent with and proposed acquisition of MoneyBar Rewards Inc., operating as Ackroo Inc. ("Ackroo"), that Ackroo has engaged M Partners Inc. and Paradigm Capital Inc. to act as co-lead agents (the "Agents") to raise up to $7,000,000 on a best efforts agency offering of securities (the "Offering") at terms to be determined in the context of the market. The Offering will include the $2,000,000 financing previously announced by the Company in connection with its proposed acquisition of Ackroo at the same terms as the Offering. The gross proceeds will be held in escrow pending completion of the business combination of RND and Ackroo.
The Agents have been granted an option to sell up to an additional 15% of the number of securities sold in the Offering at terms to be determined in the context of the market.
Trading in the common shares of the Company will remain halted pending further filings with the Exchange.
ABOUT RARE EARTH INDUSTRIES:
Rare Earth Industries Ltd ("RND") is a mineral exploration company focused on rare earth elements and rare metals. Following completion of its 2011 exploration program, the Company made a decision to curtail exploration activities in order to preserve cash and position the Company to assess other strategic opportunities both within and outside of the rare-earths sector. The Company has a strong balance sheet and continues to investigate market opportunities that will allow it to further enhance shareholder value.
ABOUT ACKROO
Ackroo enables small to medium sized businesses, independent merchants and business networks to increase profitability and build long-term customer relationships through customized loyalty and rewards programs. Their web-based solutions provide the power of a massively scalable software platform in a lightweight online tool that works with existing point-of-sale equipment, making it easy and affordable for businesses of any size to design and launch their own five-star loyalty program. Ackroo's online and in-store loyalty program options provide a blend of stored value capabilities and diverse loyalty incentives, arming businesses with their own 'private currency' and the flexibility to create customized loyalty programs that resonate with their customers. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.