Below is a news release from Derlan. Will it be a negative 'cause it puts a cap of $4.65 on the price and dilutes the number of stocks ... or are they going to do something wonderfully useful with the money ....
Who knows. It has been a long time waiting for really positive EARNINGS from Derlan. With all the contracts they have obtained we SHOULD be getting some good financial report this quarter.
Greg
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Derlan Industries Limited Agrees to Sell Common Shares for $23,250,000
TORONTO, ONTARIO--
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION
IN THE U.S.
Derlan Industries Limited announced today that it has agreed to
sell to a group of Canadian underwriters comprised of Griffiths
McBurney & Partners, First Marathon Securities Limited, Levesque
Beaubien Geoffrion Inc. and Octagon Capital Corporation a total of
5,000,000 common shares at a price of $4.65 per share for gross
proceeds of $23,250,000. The underwriters have also been granted
an option, exercisable on or before 9:00 a.m. (Toronto time) on
September 23, 1997 to purchase an additional 500,000 common shares
at the same price which, if exercised, would increase the gross
proceeds to the Company by $2,325,000.
Closing is expected to take place on October 8, 1997.
The Common Shares have not been and will not be registered under
the U.S. Securities Act of 1933 (the "U.S. Securities Act") and
may not be offered or sold within the United States or to, or for
the account or benefit of, U.S. persons except in certain
transactions exempt from the registration requirements of the U.S.
Securities Act.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Derlan Industries Limited
J. David Williamson
Senior Vice President, Chief Financial Officer
(416)364-5852 |
