News re financing for the Nortel deal - "quiet period" is now over.
Aastra Technologies Announces $55 Million Special Warrant Offering
TORONTO, ONTARIO--
NOT FOR RELEASE INTO THE UNITED STATES
Aastra Technologies Limited -(TSE: "AAH") announced that it has
agreed to a $55 million special warrant offering led by Yorkton
Securities Inc. and Sprott Securities Limited. The proceeds of
this offering will be used to finance the purchase of certain
assets of Nortel Networks' Access Solutions Division pursuant to a
definitive asset purchase agreement announced on December 13,
1999. Canaccord Capital Corporation, Acumen Capital Finance
Partners Limited and HSBC Securities (Canada) Inc. will also
participate in the private placement which is expected to close on
or before January 24, 2000.
The private placement consists of 4.4 million special warrants to
be issued at $12.50 per special warrant. Each special warrant
will entitle the holder to acquire one common share of the Company
for no additional cost. Proceeds of the offering are to be
escrowed for up to 30 days after the closing date, or such later
date as agreed to by Yorkton Securities Inc., on behalf of the
underwriters, until delivery to the underwriters of a certificate
certifying that all matters relating to the acquisition have been
completed in all material and substantive respects in accordance
with the terms of a definitive asset purchase agreement but for
the payment of the purchase price. Aastra expects to file a
prospectus to qualify the distribution of the common shares
issuable upon the exercise of the special warrants in the
provinces of British Columbia, Alberta, Manitoba, Ontario and
Quebec. In the event that receipts for the (final) prospectus
qualifying the issuance of common shares to be issued upon
exercise of the special warrants are not issued by the securities
regulatory authorities within 100 days of the closing date, each
special warrant shall entitle the holder to acquire 1.1 common
shares of the Company for no additional cost. Completion of the
special warrant offering will be subject to the execution of
definitive documentation, including an underwriting agreement, and
the receipt of all other necessary approvals.
The special warrants have not and will not be registered under the
U.S. Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption from
the registration requirements.
Aastra Technologies Limited develops and distributes
telecommunications equipment. Aastra offers a full line of
products ranging from Caller ID adjuncts to full-featured
communications systems. Aastra sells to the majority of the
telecommunications companies in North America. In the retail
market, Aastra has the exclusive license to use the "BELL (R)
Equipment - SONECOR" trademark for telephone sets and its products
are distributed to Wal-Mart, Circuit City, Radio Shack and other
mass retailers.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Aastra Technologies Limited
Mr. Allan Brett
V-P Finance & CFO
416-736-3150
abrett@aastra.com
The Toronto Stock Exchange has neither approved nor disapproved of
the information included in this press release. |
