TORONTO, April 21 /CNW/ - Northern Financial Corporation (TSX: NFC)
("Northern" or the "Company") is pleased to announce that it has closed
the second tranche of its short form prospectus offering by issuing
3,000,000 common shares (the "Common Shares") at a price of $0.30 per
The Common Shares were issued for total gross proceeds of $900,000 (the
"Offering"). The Common Shares were issued pursuant to the Company's
short form prospectus dated February 25, 2011. The Offering was sold on
an agency basis by a syndicate comprised of Northern Securities Inc.
and Byron Capital Markets Ltd. (the "Agents").
In connection with the Offering, the Agents were paid a cash commission
equal to 7% of the gross proceeds received by the Company in respect of
the Offering. In addition, the Company issued broker warrants which
entitle the holders to purchase 7% of the number of Common Shares sold
in the Offering, representing 210,000 Common Shares, at a price of
$0.30 per Common Share on or prior to April 21, 2013.
After giving effect to the Offering, Northern has 28,665,139 issued and
outstanding common shares.
On March 30, 2011, Northern closed the first tranche of its short form
prospectus offering issuing an aggregate of 11,384,998 common shares
and retired $3.2 million in debt. To date, Northern has raised
aggregate gross cash proceeds of $2.9 million under its short form
The Company may have an additional closing, although the date of such
closing is not yet known. A copy of Northern's final prospectus is
available at www.sedar.com.
The securities offered have not been, and will not be, registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any U.S. state securities laws and may not be
offered or sold in the United States or to United States persons absent
registration or any applicable exemption from the registration
requirement of the U.S. Securities Act and applicable U.S. state
securities laws. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any
sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Northern Financial Corporation
Northern Financial Corporation wholly owns Northern Securities Inc., a
full service investment dealer that provides financial advisory
services to retail and institutional clients and investment banking
services to small capitalization companies.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this news release. This press release may
contain forward-looking statements with respect to the Company, its
operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking words
such as "may", "will", "expect", "estimate", "anticipate", intends",
"believe" or "continue" or the negative thereof or similar variations.
The actual results and performance of the Company discussed herein
could differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Important factors that could cause actual results to differ materially
from expectations include, among other things, general economic and
market factors, competition, changes in government regulations and the
factors described under "Risk Factors" in the Management's Discussion
and Analysis and Filing Statement of the Company which are available at
www.sedar.com. The cautionary statements qualify all forward-looking
statements attributable to the Company and persons acting on their
behalf. Unless otherwise stated, all forward-looking statements speak
only as of the date of this press release and the Company has no
obligation to update such statements.
SOURCE Northern Financial Corporation
For further information:
| Vic Alboini || || or || || Doug Chornoboy |
| Chairman and CEO || || || || Senior Vice President and CFO |
| (416) 644-8110 || || || || (416) 644-8150 |