ST. JOHN'S, NL, June 7 /CNW/ - Rutter Inc. (TSX: RUT) a global
technology, engineering and automation enterprise, announced today that it has
closed the private placement and all the associated transactions noted in its
Press Releases dated April 13 and May 3, 2007 regarding the acquisition of
Western Canada headquartered Hinz Automation (April 13, 2007- Rutter to Expand
through Acquisition of Hinz Automation; May 3, 2007- Rutter Announces Majority
Shareholder Approval for Hinz Acquisition and Closing Date for Private
"This acquisition enables us to merge two businesses with a shared vision
to build a truly global, vendor-independent, automation enterprise," said
Donald I. Clarke, Chairman and CEO of Rutter Inc. "Based on Hinz' 2006 audited
revenues of $42.4 million and normalized EBITDA of $6.8 million, we expect
this will be an accretive investment. The combined 2006 revenues for Rutter
Inc. and Hinz are $116.7 million."
"Looking ahead to the integration of our engineering assets, we are
especially excited by the obvious synergies in combining the two companies;
the strength of the combined engineering management team; and by the expanded
market opportunities available to us. Under the leadership of Ryan Hinz,
President and CEO, and Glenn Willar, COO, Rutter Engineering & Automation
(REA) now has a strong presence in all key North American markets (Eastern and
Western Canada and the US). This North American presence combined with the
Company's strength in Brazil, substantially increases the Company's
competitive position when bidding large international automation contracts,"
Rutter closed the private placement at $12,112,286 or 18,634,286 units.
Each unit was offered at $0.65 and was comprised of one common share and
1/2 warrant; each whole warrant entitling the holder to purchase one Rutter
share at $0.80 for a period of 18 months from closing. The Company paid
commissions and finders fees of $187,500 associated with the private
placement. As was contemplated in the above noted May 3, 2007 Press Release,
the Company did receive approval from a majority of disinterested shareholders
to increase the percentage of insider participation in the private placement.
Of the total units issued under the private placement, insiders subscribed to
6,922,796 units or 37.2% of the total units issued.
Immediately prior to closing, Rutter Inc. had 43,426,896 shares issued
and outstanding (57,505,496 on a fully diluted basis). After closing the
private placement and all other transactions as contemplated in the April 13,
2007 Release, the Company now has 76,676,567 shares issued and outstanding
(94,124,310 on a fully diluted basis).
About Rutter Inc. - Rutter Inc. is a global enterprise focused on
providing innovative, 21st century technologies and engineering solutions that
improve the efficiency and safety of operating assets in marine,
transportation, oil and gas and other industrial sectors. Key activities of
the enterprise include technology development and marketing, outsource
manufacturing of electronics and electronic subassemblies and automation and
control systems engineering. For more information see www.rutter.ca.
This press release may contain forward-looking statements that involve
risks and uncertainties. These forward-looking statements reflect our current
expectations and are subject to a number of risks and uncertainties including,
but not limited to, change in technology and general market conditions. Due to
the many risks and uncertainties, Rutter Inc. cannot assure that
forward-looking statements that may be contained in this press release will be
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
For further information:
For further information: Paul Snow, Director of Communications &
Investor Relations, (709) 368-3174