Welcome To The MagIndustries HUB On AGORACOM
| June 1, 2009 |
| MagIndustries Corp. Announces Equity Financing |
TORONTO, ONTARIO--(Marketwire - June 1, 2009) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
MagIndustries Corp. ("Mag" or the "Company")(TSX VENTURE:MAA) is pleased to announce that it has filed a preliminary short form prospectus for a new issue of common shares (the "Common Shares") of the Company in certain provinces of Canada (the "Offering"). The Offering is anticipated to raise approximately $30 million in gross proceeds prior to the Over-Allotment Option described below.
The Offering is being led by Cormark Securities Inc. and includes a syndicate of dealers (collectively, the "Underwriters").
Mag has also granted the Underwriters an option (the "Over-Allotment Option") for purchase up to an additional 15% of the Common Shares sold under the Offering to cover over-allotments, if any and for market stabilization purposes. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following the closing of the Offering.
The Offering is scheduled to close on or about June 16, 2009 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 net proceeds of the Offering will be applied toward the construction of Phase I of the Company's potash project near Mengo in the Kouilou province of the Republic of Congo, including construction of a portion of the natural gas pipeline, purchasing of materials, services and equipment, and acceleration of engineering work.
The Common Shares offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. 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 Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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