NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
FRANKLIN, IN – (JUNE 6, 2018) – IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) is pleased to announce that it has closed its previously announced short form prospectus offering (the “Offering”) of debenture units (“Debenture Units”) and convertible debenture units of the Company (“Convertible Debenture Units” and, together with the Debenture Units, the “Offered Units”) to fund an expansion of its production capacity and for other purposes. The Offering raised gross aggregate proceeds to the Company of approximately C$4.1 million, and was led by Mackie Research Capital Corporation as lead agent and sole bookrunner on behalf of a syndicate of agents (collectively, the “Agents”).
“We were very pleased with the strong response to this offering from both new and existing investors, and I want to thank each and every one of them for their support and their vote of confidence in the future of IBC,” said Major General Duncan Heinz (USMC, ret.), President and CEO of IBC. “Having achieved operational profitability this last quarter for the first time since 2008, we are well positioned and adequately funded to continue focus on gross margin improvements and to take advantage of several opportunities for growth on our horizon.”
Pursuant to the Offering, the Company issued an aggregate of 182 Debenture Units and 3,987 Convertible Debenture Units at a price per Offered Unit of C$1,000 (the “Offering Price”). Each Debenture Unit consists of one 9.5% unsecured debenture of the Company in the principal amount of $1,000 (each, a “Debenture”) with interest payable semi-annually in arrears on June 30 and December 31 of each year and maturing five years from the date the Debentures are issued, and 2,300 common share purchase warrants (each, a “Warrant”) expiring 60 months after the date of issuance of such Warrants. Each Convertible Debenture Unit consists of one 8.25% unsecured convertible debenture of the Company in the principal amount of $1,000 (each, a “Convertible Debenture”), convertible into common shares at a conversion price of $0.31 per common share at the option of the holder, with interest payable semi-annually in arrears on June 30 and December 31 of each year and maturing five years from the date the Convertible Debentures are issued, and 2,300 Warrants expiring 60 months after the date of issuance of such Warrants. Each Warrant will entitle the holder thereof to purchase one common share (“Common Share”) of the Company (each, a “Warrant Share”) at an exercise price of $0.37 per Warrant Share at any time up to 60 months following the closing date of the Offering.
The Offered Units were issued pursuant to the terms and conditions of an agency agreement dated May 28, 2018 between the Company and the Agents (the “Agency Agreement”). Pursuant to the Agency Agreement, the Agents were: (a) paid a cash commission equal to 6.75% of the gross proceeds of the Offering; and (b) issued 1,086,253 broker warrants (the “Broker Warrants”).
The Company intends to use the net proceeds of the Offering to invest in capital equipment necessary for a planned expansion of production capacity, increase inventory to support greater sales conversion and more efficient product delivery, address maintenance and stock and for working capital and general corporate purposes.
The Offered Units were issued pursuant to a final short form prospectus dated May 28, 2018 filed with the securities regulatory authorities in British Columbia, Alberta and Ontario (the “Prospectus”). A copy of the Prospectus is available under the Company’s profile on SEDAR at www.sedar.com. The Offered Units (including the Common Shares and Warrants) will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements.
The Company has received final approval to list the Convertible Debentures, Debenture Shares, Warrant Shares and Common Shares underlying the Convertible Debentures and Broker Warrants on the TSX Venture Exchange.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Offering Units in any jurisdiction in which such offer, solicitation or sale would be unlawful. For more information on the Offering and the Company’s intended use of the net proceeds of the Offering, please refer to the Prospectus.
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
“Duncan Heinz”
David “Duncan” Heinz, President, CEO and Director
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About IBC Advanced Alloys Corp.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC’s Copper Alloys Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC’s Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC’s has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company’s common shares are traded on the TSX Venture Exchange under the symbol “IB” and the OTCQB under the symbol “IAALF”.
Contact:
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
Email: [email protected]
Website: www.ibcadvancedalloys.com
@IBCAdvanced $IB $IAALF #Beryllium #Beralcast
Cautionary Statements
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 or its customers operate, including the semiconductor manufacturing and oil and gas industries, 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, limited availability of raw materials, 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. Such forward-looking statements include but are not limited to statements regarding the use of proceeds of the Offering.
