Deal sells 18,666,666 units of a common share and a five-year warrant
By Devika Patel
Knoxville, Tenn., May 5 – IBC Advanced Alloys Corp. said it increased a non-brokered private placement of units to C$7 million from C$5.5 million. The deal priced on April 7.
The company will now sell 18,666,666 units of one common share and one warrant at C$0.375 per unit.
Each warrant will be exercisable at C$0.50 for five years. The strike price is a 733.33% premium over the company’s C$0.06 closing share price on April 6.
Proceeds will be used for capital expenditures at the company's Copper Alloys and Engineered Materials divisions to increase capacity and production efficiencies and as general business working capital.
The sale is being conducted in connection with a major corporate reorganization and capital raise designed to boost production capacity and revenue from its Copper Alloys and Engineered Materials divisions. The reorganization consists of a share consolidation, the private placement and certain changes to the company's management and directors. The company will consolidate its share capital on the basis of one post-consolidation common share for every ten pre-consolidation common shares. The company currently has 98,085,813 common shares outstanding and expects to have 9,808,581 common shares outstanding after completing the consolidation.
The manufacturer and distributor of beryllium-based alloys and related products is based in Vancouver, B.C.
| Issuer: | IBC Advanced Alloys Corp.
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| Issue: | Units of one common share and one warrant
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| Amount: | C$7 million
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| Units: | 18,666,666
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| Price: | C$0.375
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| Warrants: | One warrant per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | C$0.50
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| Agent: | Non-brokered
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| Pricing date: | April 7
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| Upsized: | May 5
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| Stock symbol: | TSX Venture: IB
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| Stock price: | C$0.06 at close April 6
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| Market capitalization: | C$4.9 million
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