By Sheri Kasprzak
New York, March 30 - Noveko International Inc. said it plans to raise C$7 million in a PIPE to help fund the acquisition of Lapjack (Canada) Ltd. and its subsidiary Bolduc Leroux Inc.
The deal includes 7 million units of one share and one warrant for one-fifth of a share at C$0.50 each. The whole warrants are exercisable at $1.00 each for two years.
The unit price is an 11.1% premium to the company's C$0.45 closing stock price Thursday. The warrant strike price is a 122% premium to the same closing stock price.
The acquisition will be funded through $500,000 in cash and by the issuance of the units.
Noveko has also agreed to buy 300,000 class E shares of Bolduc Leroux.
Andre Leroux, chief executive officer of Noveko and director and vice president of Bolduc Leroux Inc., agreed to buy at least 4 million and up to 6 million of the units.
The acquisition is expected to close April 28.
Montreal-based Noveko designs ultrasound scanners used in veterinary medicine and animal breeding, as well as human medicine.
| Issuer: | Noveko International Inc.
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| Issue: | Units of one share and one fifth-share warrant
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| Amount: | C$3.5 million
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| Units: | 7 million
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| Price: | C$0.50
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| Warrants: | One fifth-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | $1.00
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| Pricing date: | March 30
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| Stock symbol: | TSX Venture: EKO
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| Stock price: | C$0.45 at close March 30
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