Avcorp Raises $11 Million, Announces Completion of Private Placement of Common Shares.VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 18, 1996--AVCORP IND. (ME AVP AVP arginine vasopressin. .) Avcorp Industries Inc. announced today that it has completed a two step financing transaction which includes a private placement of 2,360,000 common share units at a price of $3.90 per unit through the facilities of Gordon Capital Corp. and Yorkton Securities Inc. The units carry 0.5 of a warrant which entitle the holder of each whole warrant to purchase an additional common share at $4.35 for a period of one year after closing. Two Canadian and twelve European institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. and a small group of existing investors participated in the financing. To assist in facilitating the underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , an existing shareholder, Pantic Investors Ltd. previously owning 12 percent of the Company's common shares, sold 1,100,000 free trading shares to the European investors and in turn purchased 1,100,000 units of the proposed issue, subject to a hold period. These units include an additional 0.5 warrant which is subject to shareholder approval to be voted on at the Company's Annual General Meeting which is currently scheduled for February 1997. The private placement agreement provided for agents' warrants equal to 5 percent of the initial shares offered (118,000 full warrants), agents fees and a finders fee. The proceeds from this offering will further enhance the working capital of the Company, allow for investment in new equipment for the increased customer offload To remove work from one computer and do it on another. See cooperative processing. already underway and acquisitions. The Company also announced today that the Working Opportunity Fund (EVCC EVCC East Valley Children's Center (Tempe, AZ) ) Ltd. exercised its total holding of 750,000 warrants received as a result of the private placement completed in February 1996. Each warrant was exercisable for one common share at $2.75 per share for total proceeds of $2,062,500. Avcorp Industries Inc. is a Canadian aerospace industry manufacturer. The Company is a single-source supplier for design, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and assembly of metal, composite and plastic components and is made up of four divisions: Aerostructures, Composites, Metal Products and Engineering. CONTACT: Avcorp Industries Inc. Mr. C Mr C (aka Mr. Chuggs, born Richard West on January 2 1964) is a British DJ, musician and rapper. Best known for fronting The Shamen during their most commercially successful era, Mr C is also an acclaimed house music DJ and co-owner/co-founder of London's The End nightclub .E. Butterfield, 604/ 278-4204 604/278-8346 (FAX) |
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