VMS two year wts coming. We all need to watch for this.
VMS Ventures arranges $19.5-million private placement
VMS Ventures Inc (C:VMS)
Shares Issued 71,709,998
Last Close 10/17/2007 $1.58
Thursday October 18 2007 - News Release
Mr. Rick Mark reports
VMS VENTURES INC. ANNOUNCES $19,500,000 PRIVATE PLACEMENT
VMS Ventures Inc. plans on raising up to $19.5-million through a brokered private placement offering of units and flow-through shares. The private placement, which will be offered by a syndicate of agents led by GMP Securities LP, and including Evergreen Capital Partners Inc. and Jennings Capital Inc., on a best-efforts basis, will consist of up to eight million units of the company at a price of $1.50 per unit and up to five million common shares of the company which qualify as flow-through shares for the purposes of the Income Tax Act (Canada) at a price of $1.50 for each flow-through share.
Each unit will consist of one common share of the company and one transferable common share purchase warrant of the company. Each warrant shall entitle the holder thereof to acquire one common share of the company at a price of $2.25 for a period of two years following the closing date of the private placement.
Closing of the offering is anticipated to occur on or before Nov. 7, 2007, and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The unit shares, flow-through shares and common shares issuable upon exercise of the warrants will be subject to resale restrictions for a period of four months plus one day from the closing date of the private placement.
The net proceeds from the sale of the units will be used to finance continuing exploration and development activities, and for general corporate purposes. The gross proceeds received by the company from the sale of the flow-through shares will be used to incur eligible Canadian exploration expenses (CEE) that qualify as Canadian exploration expenses for purposes of the Income Tax Act (Canada) and which will be renounced in favour of the holders with an effective date of no later than Dec. 31, 2007.
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