/NOT FOR DISTRIBUTION IN THE UNITED STATES WIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/
OTTAWA, June 27, 2013 /CNW/ - BluMetric Environmental Inc. (TSXV: BLM) ("BluMetric" or the "Company") announces completion (the
"Closing") of a brokered private placement offering (the "Offering") of
1,430 unsecured convertible debenture units (the "Units"), for gross
proceeds of $1,430,000. Each Unit of the Offering comprises a C$1,000
convertible debenture (the "Convertible Debentures") and 1,666 one-half
common share purchase warrant (each whole warrant, a "Warrant"),
subject to TSX Venture Exchange final approval. The Convertible
Debentures are convertible, at the option of the subscriber, at any
time prior to the maturity date, into common shares of the Company
("Common Shares") at a conversion price of C$0.60 per Common Share
representing a conversion rate of approximately 1,666 Common Shares per
C$1,000 in principal amount of the Convertible Debentures. Holders of
the Convertible Debentures also have the option to receive interest
payments in cash or, subject to the approval of the TSX Venture
Exchange, Common Shares based on the 20-day volume weighted average
price, which will not be lower than the Discounted Market Price of the
Common Shares (as defined in the TSX Venture Manual), at the time of
payment. The Convertible Debentures mature three years from the
Closing, and bear interest at a rate of 9% per annum, calculated from
date of issue, semi-annually in arrears and compounded annually.
Jacob Securities Inc. acted as sole agent and book-runner on the
Offering. Jacob Securities and other members of the selling group have
been paid in the aggregate (i) a cash fee and broker warrants of 7.5% on $680,000 of the gross
proceeds and (ii) a cash fee and broker warrants of 3.75% on the balance of $750,000 of
the gross proceeds. The broker warrants are exercisable into Common
Shares at a price of C$0.60 per share for a period of two years from
Each Warrant entitles the holder to purchase one Common Share at an
exercise price of C$0.75 per Common Share for a period of two years
from the Closing. The Common Shares underlying the Convertible
Debentures and the Warrants are subject to a four-month hold period
from the date of Closing and the Common Shares issued in respect of the
interest payments if any, are subject to a four-month hold period from
the date of issue.
An Insider of the Company, Jordan Grant, Chairman and a director of the
Company, participated in the Offering for 50 Units representing 3.5% of
the Offering. Mr. Grant participated in the Offering on the same terms
and conditions as the other subscribers. This related-party transaction
was not previously disclosed. The information is being filed less than
21 days prior to the closing because the shorter period was necessary
in order to permit the Company to close the Offering, including the
related-party transaction, in a timeframe consistent with usual market
practice for transactions of this nature.
Proceeds from the private placement will be utilized to finance new
order pipeline and completion of existing contracts, facility leasehold
improvements, debt repayment, and corporate and general working
BluMetric delivers sustainable solutions to complex environmental
issues. The Company serves clients in many industrial sectors, and at
all levels of government, in Canada and abroad.
BluMetric operates through two divisions:
Professional Services Division, providing environmental earth sciences
and engineering solutions, including contaminated site remediation,
water resource management, industrial hygiene, occupational health &
safety, and renewable energy. This division also operates under the
names "WESA", "Envir-Eau", and "OEL-HydroSys"
Water Division, focussed on design-build and pre-engineered product
solutions to industrial/commercial water and wastewater treatment
needs. This division also operates under the names "WESAtech" and
More information can be obtained at www.blumetric.ca.
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.
SOURCE: BluMetric Environmental Inc.
For further information:
Ian W. Malone, CFO
Tel: (613) 523-1641
Fax: (613) 731-0851
Robin M. Sundstrom
IRonside Investor Relations
Tel: (647) 822- 8111