Oversubscription of private placement (again)!!!!
NEWS RELEASE TRANSMITTED BY CCN DISCLOSURE
FOR : IBI Corporation
CANADIAN DEALING NETWORK SYMBOL: IBIC
December 27, 2000
IBI Corporation: Private Placement Extension Oversubscribed
TORONTO, ONTARIO--
IBI Corporation (IBIC) (the "Company"), a junior mining and investment company, announces the following financing updates:
Private Placement
The private placement of 12,500,000 units announced February 21, 2000 and the extension thereof by a further 2,000,000 units announced October 30, 2000 has now been oversubscribed, and in excess of $600,000 has been raised. Each unit was issued at $0.04, and consisted of one common share and one warrant to acquire an additional common share at the price of $0.045, exercisable at any time within two years. The common shares and warrants are subject to a one year hold period from the date of subscription and payment.
Closing of the placement is expected to occur in January 2001. The proceeds have been utilized for the Company's working capital and for the Namekara vermiculite mine in Uganda - to open the mine, to process commercial samples and develop prospective customers, to install required infrastructure, to acquire land and compensate landowners at the mine site, to work with the Government Department of Mines to obtain a mining lease, and to design and fabricate the initial processing equipment.
If the warrants are exercised at $0.045 within the next two years, a further $650,000 of working capital will be raised for the Company.
Extension of Warrants from 1999 Rights Offering
The expiry date for exercise of these $0.06 warrants has been extended until January 31, 2001. Because of delays in finalizing the mining lease and granting of relisting status, it has not been practical for holders of warrants to exercise them to date.
Documentation and payments for the exercise of some of these warrants has been received by the transfer agent and the Company during the past week. Prior to recent exercises thereof, there were 13,598,516 warrants outstanding. If all of these warrants were to be exercised prior to January 31, 2001, there would be additional paid in capital to the Company exceeding $815,000.
A portion of the proceeds from the exercise of the warrants will be used to fund the final capital costs for construction of premises and processing equipment for the commercialization of the Namekara vermiculite (estimated as $300,000). The balance will be for working capital.
Certain shareholders who do not hold these warrants have expressed an interest in participating in the exercise thereof in order to provide additional capital for the Company. Any holder of these warrants may assign them to another interested participant. For co-ordination and details of this procedure, please contact Gary Fitchett or Adam Cegielski.
Shares Outstanding
The Company has 204,952,878 common shares issued and outstanding, before the closing of the private placement and exercise of warrants outlined above. |
