Automodular Corporation Announces
Treasury & Secondary Offering via Bought Deal
Toronto: October 12, 2007
Not for distribution to United States newswire services or for dissemination in the
United States
Automodular Corporation (AM – TSX) (“Automodular” or the “Company”) announces that the Company and Scotia Merchant Capital Corporation ( “the Selling Shareholder”) have entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and including Canaccord Capital Corporation (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 3,000,000 common shares from the Company and 3,000,000 common shares from the Selling Shareholder at a price of $2.00 per share for aggregate gross proceeds to the Company of $6,000,000 and to the Selling Shareholder of $6,000,000.
The Underwriters will also have an option, exercisable for a period of 30 days following the closing date, to purchase up to an additional 900,000 common shares from the Company on the same terms and conditions.
The net proceeds from the treasury offering will be used by the Company for working capital and general corporate purposes. The Company will not receive any proceeds from the secondary offering by the Selling Shareholder.
The common shares to be sold pursuant to the offering will be offered by way of a short form prospectus in all of the provinces of Canada excluding Quebec, and in the United States only on a private placement basis pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended.
The common shares may also be offered for sale to qualified investors in certain jurisdictions outside Canada and the United States.
The offering is scheduled to close on or about November 2, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals.
Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to five Original Equipment Manufacturer plants in Ontario and Ohio. The Company has five operating facilities and employs over 900 people.
For further information, contact:
Christopher Nutt
Vice President, Finance
Automodular Corporation
(416)861-0662 x 223
c.nutt@automodular.com
This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company's periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
|
