Enforcement arranges $10-million private placement
2005-02-11 10:20 ET - News Release
Mr. Ian McDonald reports
PEARL ANNOUNCES AGREEMENT WITH CANACCORD
Patent Enforcement and Royalties Ltd. has signed an agreement with a syndicate of agents led by Canaccord Capital Corporation and including Toll Cross Securities Ltd., First Associates Ltd. and Haywood Securities Inc. pursuant to which the agents will act on a best efforts basis, in connection with the private placement offering by PEARL of up to $10-million of working capital units and flow-through shares. The working capital units will consist of a common share and one-half of a warrant exercisable for two years. The price for the offered securities will be determined by negotiation between the agents and the company and will be subject to the policies of the TSX Venture Exchange. The agents will be paid a commission of 7 per cent of the gross proceeds of the offering and will be issued agents' warrants equal to 10 per cent of the number of working capital units and flow-through shares sold. Finances will be used for the acquisition of the Yorke-Hardy property (see news as reported in Stockwatch Nov. 22, 2004, Jan. 18, 2005, and Jan. 20, 2005), for the initial exploration program on the property recommended by Giroux Consultants Ltd. in its NI 43-101 report dated Dec. 17, 2004, amended Jan. 12, 2005, and to provide the company with funds to further advance the project.
The company also wishes to announce that John Cocomile has resigned as president and chief executive officer but will remain a director, and Ian J. McDonald has been appointed president and chief executive officer.
Completion of the transaction is subject to a number of conditions, including but not limited to, exchange acceptance and disinterested shareholder approval of the company's change of business. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the change Of business, any information released or received with respect to the change of business may not be accurate or complete and should not be relied upon. Trading in the securities of PEARL should be considered highly speculative. |
