MELFORT, SK, Oct. 29, 2014 /CNW/ - Hodgins Auctioneers Inc. (HA-TSX.V) ("Hodgins" or the "Company") is pleased to announce the signing of a non-binding letter of intent to purchase all of the issued and outstanding shares of an oilfield services company operating out of northwest Alberta. Details are confidential pending due diligence review and execution of a definitive binding arrangement.
The Company has sought TSX Venture Exchange ("TSXV") approval for a proposed non-brokered private placement of up to 10,000,000 units at a price $0.05 per unit for gross proceeds of up to $500,000. Each unit will be comprised of one common share in the capital of Hodgins and one half of one common share purchase warrant. Each full warrant will entitle the holder to purchase one common share at a price of $0.075 per common share exercisable no later than the date that is one year from the date of issuance of such warrant provided. All of the securities issued under the private placement will be subject to a four month resale restriction and will contain a legend which will detail the resale restriction. There is no minimum subscription under the private placement and Hodgins may close the offering in several tranches; however, the private placement must be concluded by December 31, 2014. The proceeds of the private placement will be unallocated and may be used for working capital or to partially fund acquisitions. In connection with this private placement, Hodgins will pay cash finder's fees equal to 8% of the funds raised to eligible finders who introduce subscribers to the private placement and issue one common share and one finder's fee warrant for every 10 units issued to eligible subscribers. Each finder's fee warrant will be issued to finders on the same terms as the warrants comprising the units.
Grant Hodgins, CEO of Hodgins Auctioneers stated "This agreement provides an anchor for Hodgins Auctioneers to expand its business in the province of Alberta, and follows the company's strategy to diversify its business."
About Hodgins Auctioneers Inc.
Headquartered in Melfort, Saskatchewan for more than 50 years, Hodgins Auctioneers is a provider of professional auction services. Hodgins is renowned for its experienced Auctioneers, award-winning promotions, dependable results and commitment to providing the ultimate marketplace for the sale of assets by auction.
Neither the 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.
SOURCE: Hodgins Auctioneers Inc.
For further information: Grant Hodgins, CEO, Hodgins Auctioneers Inc., Tel: 1-800-667-2075, Fax: (306) 752-5702, Email: [email protected], Website: www.hodginsauctioneers.com