BluMetric Announces Completion of Private Placement
27 Jun, 2013, 17:57 ET
/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 the Closing.
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 capital.
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 "Seprotech".
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
Email: [email protected]
Robin M. Sundstrom
IRonside Investor Relations
Tel: (647) 822- 8111
Email: [email protected]
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