IBI Corporation Secures Financing
TORONTO, CANADA--The Chairman of IBI Corporation (IBIC-CDN) is pleased to announce that IBI has entered into a commitment on an arm's length basis, with Northern Bancorp Inc. ("Northern"), on behalf of its client, for an investment of $1,500,000 to acquire a 15.79 percent interest in IBI, subject to the completion of all requisite agreements in form and substance satisfactory to Northern and its solicitors.
The $1.5 million investment will be made in two installments: $700,000 on June 30th and $800,000 July 31st. The proceeds from this investment will be used by IBI to earn into its 70 percent interest in the Namekara Vermiculite and Busumbu Phosphate deposits and for working capital purposes.
IBI is currently negotiating agency fees with Northern in respect of this transaction. Such fees are expected by IBI to be approximately 7 percent.
Warrants held by shareholders who participated in IBI's rights offering may be exercised at 6 cents up to June 30th to entitle the holder to a share and a half bonus warrant. Each whole bonus warrant entitles the holder to purchase an additional share at 10 cents up to June 30, 2000. If warrants are fully exercised, IBI would raise an additional $1.1 million.
IBI Corporation trades on the Canadian Dealing Network under the symbol IBIC. The Company has 200,048,089 common shares issued.
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