UrtheCast Announces Closing of Over-Allotment Option in Full
/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
VANCOUVER, Jan. 16, 2014 /CNW/ - UrtheCast Corp. (TSX:UR) ("UrtheCast" or the "Company") announced today that the syndicate of underwriters led by Clarus Securities Inc., and including Cormark Securities Inc. and Canaccord Genuity Corp., have exercised in full their over-allotment option to purchase an additional 681,825 common shares of the Company at a price of $2.20 per common share in connection with their previously announced bought deal public offering which was completed on December 19, 2013. As a result of the exercise of the over-allotment option, UrtheCast received additional gross proceeds of $1.5 million for total gross proceeds of $11.5 million.
The Company intends to add the additional net proceeds from the exercise of the over-allotment option to the Company's working capital and anticipates that the net proceeds will primarily be used for commissioning and commercialization of the Company's cameras, regulatory and operational costs and development of infrastructure in furtherance of the Company's business plan and for general corporate purposes.
The common shares have not, nor will they be 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 U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale or the solicitation of an offer to buy securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About UrtheCast Corp.
UrtheCast Corp. is a Vancouver-based technology company that is developing the world's first color video feed of Earth, from space. Working with renowned aerospace partners from across the globe, UrtheCast has built, launched, and expects to install and operate, two cameras on the Russian segment of the ISS. Video and still image data captured by the cameras will be downlinked to ground stations across the planet and displayed on the UrtheCast web platform, or distributed directly to exclusive partners and customers. UrtheCast's cameras will provide high-resolution video and imagery of Earth that will allow for monitoring of the environment, humanitarian relief, social events, agricultural land, etc. Common shares of UrtheCast trade on the Toronto Stock Exchange as ticker 'UR'.
For more information visit our website at www.urthecast.com.
Forward Looking Information
This release contains certain information which, as presented, constitutes "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information involves statements that relate to future events and often addresses expected future business and financial performance, containing words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions and includes, but is not limited to, statements about the use of net proceeds, the timing and success of installing our cameras on the ISS, the commissioning of the cameras once installed, plans to operate camera components on, and stream video footage from, the ISS, proposed image and video product offerings and expected partners and customers to distribute such products. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of UrtheCast to control or predict, and which may cause UrtheCast's actual results, performance or achievements to be materially different from those expressed or implied thereby, including, but not limited to, damage which may have occurred to the cameras during launch or which may occur once mounted on the ISS, unexpected changes in Russian or Canadian government policies, technology changes, reliance on key personnel, the potential for conflicts of interest among certain officers, directors or promoters with certain other projects, competition, risks related to the business activities of Longford Energy Inc. (now UrtheCast) prior to the reverse take-over transaction with Earth Video Camera Inc., as well as those factors discussed in the Company's annual information form dated November 14, 2013, (the "AIF") and the Company's short form prospectus dated December 12, 2013 (the "Prospectus") which are available under UrtheCast's SEDAR profile at www.sedar.com. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, in the AIF and Prospectus, and as otherwise disclosed from time to time on UrtheCast's SEDAR profile.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and UrtheCast undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements.
SOURCE UrtheCast Corp.For further information:
Scott Larson, CEO
+1 (604) 669-1788