Seprotech Completes Private Placement
OTTAWA, Sept. 22, 2011 /CNW/ - Seprotech Systems Incorporated (TSX-V: SET; "Seprotech" or the "Corporation") advises that it has completed its previously announced non-brokered private placement offering (the "Offering") for the maximum targeted gross proceeds of $600,000. The Offering, which was available only to accredited investors was for 12,000,000 common shares at $0.05 per share.
Also as previously announced, companies controlled by an Insider of the Corporation, Jordan Grant, Chairman and CEO and a director of the Corporation, participated in the Offering for 2,000,000 common shares representing 16.7% of the Offering. In addition, Mr William Touzel, a director of the Corporation purchased 500,000 common shares representing 4.2% of the Offering. Mr. Grant's companies and Mr. Touzel each participated in the Offering on the same terms and conditions as the other subscribers. The disclosure relating to the related party transaction was identified in the Corporation's press release on September 14, 2011. The information is being filed less than 21 days prior to the closing because the shorter period was necessary in order to permit the Corporation to close the Offering, including the related party transaction, in a timeframe consistent with usual market practice for transactions of this nature.
The common shares issued pursuant to the Offering will be subject to a four month hold period from the closing date of the Offering.
Proceeds from the private placement will be utilized to fund production of several new contracts recently awarded to the Corporation, as well as funding overhead pending commencement of cash flow from such contracts, and for repayment of normal course trade and bank debt.
Chairman and CEO Jordan Grant stated, "We are making steady progress in our turnaround plan, as evidenced by the various press releases we've issued over the past several months, which has made this offering possible. We appreciate the confidence shown in the Corporation by the participants in this placement, who include a combination of existing and new shareholders."
Seprotech is a provider of pre-engineered water and wastewater treatment solutions to the municipal/land development, resource sector and military market place, including Reverse Osmosis water purification systems, ROTORDISK® biological sewage treatment package plants and CrystalBlue™ membrane-based water recycling systems.
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. The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Some of the statements in this press release, including those relating to the Corporation's strategies and other statements, the private placement financing activities of the Corporation, the use of proceeds of the private placement financing, that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Corporation. These statements are not historical facts but instead represent only the Corporation's expectations, estimates and projections regarding future events. The Corporation does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.For further information:
Mr. Ian W. Malone, CFO
Tel: (613) 523-1641
Fax: (613) 731-0851