VANCOUVER, BC – September 30, 2011 – IBC Advanced Alloys Corp. (TSX.V:IB) (“IBC” or the “Company”) has amended the terms of its previously announced bought deal financing with Euro Pacific Canada Inc. (“Euro Pacific Canada”) to increase the size of the offering from $2.5 million to $3.0 million. Under the amended terms of the offering Euro Pacific Canada has agreed to purchase an additional 2,500,000 equity units (“Equity Units”) at $0.20 per Unit, on a bought deal basis, resulting in an overall offering of (i) 10,000,000 units (the “Unit”) at an issue price of $0.20 per Unit and (ii) 5,000,000 Equity Units at an issue price of $0.20 per Equity Unit for aggregate gross proceeds of $3,000,000 (the “Offering”). The Company has also agreed to a proportional increase in the over-allotment option previously granted to Euro Pacific Canada such that Euro Pacific Canada has an option, exercisable for a period of 30 days following the closing date, to purchase up to an additional 2,250,000 Equity Units to cover over-allotments, if any, and for market stabilization purposes, for additional gross proceeds of $450,000.
The Units and Equity Units to be issued under the Offering will be offered by way of a short form prospectus in all of the provinces in Canada except Quebec and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
Each Unit consists of one common share (“Common Share”) in the capital of IBC and one-half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share at a price of $0.25 for a period of 24 months from the Closing Date.
Each Equity Unit consists of (i) one Unit, (ii) one-half of one subscription right, with each whole right giving the holder the right, but not the obligation, to purchase on the date that is 30 calendar days from the Closing one Unit at the Offering Price (“Subscription Privilege One”); and (iii) one-half of one subscription right, with each whole right giving the holder the right, but not the obligation, to purchase on the date that is 60 calendar days from the Closing one Unit at the Offering Price (“Subscription Privilege Two” and together with Subscription Privilege One, the “Subscription Privilege”). If the Subscription Privilege were exercised in full, the Company would receive aggregate gross proceeds of $2,000,000. There is no assurance that the Subscription Privilege would be exercised, or if exercised, would be exercised in full.
The Company intends to use the net proceeds of the prospectus to strengthen IBC’s balance sheet by paying down notes payable, and if funds permit, for adding inventory and general working capital purposes. The closing of the offering is scheduled to be on or about October 24, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
THE COMMON SHARES, WARRANTS, SUBSCRIPTION PRIVILEGE, EQUITY UNITS AND UNITS HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS.
About IBC Advanced Alloys Corp.
IBC is an integrated manufacturer and distributor of rare metals (beryllium) based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 80 employees and is headquartered in Vancouver, Canada with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri. Additionally, IBC owns prospective beryllium properties in the Western US covering approximately 9,500 hectares. IBC is creating a dynamic global beryllium and advanced alloys company. IBC’s common shares are traded on the TSX Venture Exchange under the symbol “IB”.
For additional information please contact:
IBC Advanced Alloys Corp.
Ian Tootill, Director of Corporate Communications
+1 (604) 685-6263 ext. 110
Email: [email protected]
Website: www.ibcadvancedalloys.com
Further information on this financing can be obtained from:
Russell N. StarrHead of Institutional Equities and Director
Euro Pacific Canada Inc.
+1 (416) 649-4272
This news release was prepared by management of IBC, which takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with manufacturing activities therefore the Company’s future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
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