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.
SOURCE Seprotech Systems Incorporated
For further information:
Mr. Ian W. Malone, CFO
Tel: (613) 523-1641
Fax: (613) 731-0851