By Sheri Kasprzak
Atlanta, Dec. 17 - NordTech Aerospace Inc. said Friday it will raise about C$5 million in a private placement.
The company will sell 14,705,882 subscription receipts at C$0.34 each.
The deal is being offered to meet a condition of the company's acquisition of ExelTech Aerospace.
The subscription receipts, upon the closing of the acquisition, allow for one share and one half-share warrant. The whole warrants allow for an additional share at C$0.45 each for 18 months.
The placement agents in the offering, National Bank Financial Inc., Canaccord Capital Corp. and Octagon Capital Corp., have the option to sell an additional 8,823,529 subscription receipts for an additional C$3 million. The agents also have an over-allotment option before Jan. 31, 2005 for an additional 5,883,353 subscription receipts. If both options are exercised, the total proceeds raised in the deal will be more than C$10 million.
The deal is scheduled to close Dec. 23.
Quebec City-based NordTech manufactures commercial aircraft. The company plans to use the proceeds from the deal to finance the cash portion of its ExelTech Aerospace acquisition. The remainder of the funds will be used for working capital and for general corporate purposes.
| Issuer: | NordTech Aerospace Inc.
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| Issue: | Subscription receipts of one share and one half-share warrant
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| Amount: | C$5 million
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| Shares: | 14,705,882 subscription receipts
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| Price: | C$0.34
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| Warrants: | One half-share warrant per receipt
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$0.45
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| Placement agent: | National Bank Financial Inc. (lead); Canaccord Capital Corp.; Octagon Capital Corp.
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| Greenshoes: | For 8,823,529 subscription receipts before closing; for 5,883,353 subscription receipts before Jan. 31, 2005
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| Announcement date: | Dec. 17
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| Settlement date: | Dec. 23
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| Stock price: | C$0.415 at close Dec. 17
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