LAVAL, QC, July 6 /CNW Telbec/ - Mercator Transport Group Corporation ("Mercator Transport") (TSX-V: GMT) is proud to announce the conclusion, on July 6, 2010, of a private placement of $1,600,000 through the issuance of 5,333,333 common shares at a price of $0.30 per share.
This private placement is being made with institutional investors, as well as with directors of Mercator Transport. The portion of the private placement completed by the institutional investors represents $1,250,000 or 78% of the total amount, whereas directors, for their part, subscribed for $350,000 or 22% of the total amount. It is important to note that all the directors participating in this private placement are independent directors, within the meaning of applicable securities regulations.
Mercator Transport plans to use the funds collected through the private placement to expand its activities, including in Europe and Africa, as well as for the purposes of the previously announced acquisition of the French corporation S.A.S. Trans Orient Services.
Laurentian Bank Securities ("LBS") acted as dealer for the private placement. LBS will receive remuneration in the amount of $80,000 (6.4% of the gross proceeds of the private placement made by the investment funds) as commission, as well as 166,667 warrants allowing it to subscribe to 166,667 common shares (4% of the common shares subscribed by the investment funds) of Mercator Transport at a price of $0.30 per share within 24 months after closing of the private placement. No remuneration will be paid for the shares subscribed for by the independent directors.
After the private placement, the number of common shares issued and outstanding is at 33,135,001. Also outstanding are 1,800,000 stock options and 166,667 warrants, each warrant and stock option allowing the subscription to one common share.
The aforementioned private placement is conditional to final approval by the TSX Venture Exchange and other requirements.
About Mercator Transport
Mercator Transport specializes in transport brokerage, international logistics and distribution. Based in Montreal (Canada), with offices in the United States, France, Ghana, Kenya, Tanzania, Uganda and now Zambia, Mercator Transport offers value-added services in global supply chain management, and designs tailor-made solutions. Customer intimacy and commitment differentiates Mercator Transport in its ability to implement customers' requirements.
This press release contains forward-looking statements. Words such as "can," "have," "should," "anticipate," "believe," "project," "estimate," "plan," "continue" or similar expressions are intended to identify forward-looking statements. These forward-looking statements, by their nature, are not guarantees of Mercator Transport's future operating or financial performance and are subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Factors that could cause actual results to differ materially from those contemplated in forward-looking statements include risks associated with conditions attached to the private placement, economic conditions, as well as risks associated with the business environment, and operational risk of Mercator Transport and its subsidiaries. Given the analyses and uncertainties, actual events may differ materially from current expectations. Mercator Transport disclaims any intention or undertaking to update or revise any forward-looking statements, even as a result of future events or otherwise, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulatory 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 MERCATOR TRANSPORT GROUP CORPORATION
For further information: For further information: Mr. Patrick Bazinet, Director and Interim CFO, Investor relations, (450) 667-8886, firstname.lastname@example.org