Railpower announces $25 million bought deal
RLPPF.PK
TORONTO, Jan. 23 /CNW/ - Railpower Technologies Corp. (the "Company") is
pleased to announce that it has entered into an agreement to sell, on a bought
deal basis, 25,000,000 units (the "Units") at a price of C$1.00 per Unit to a
syndicate of underwriters led by Canaccord Adams and Sprott Securities Inc.,
and including National Bank Financial Inc., Paradigm Capital Inc., and Pacific
International Securities Inc. (collectively, the "Underwriters"), for gross
proceeds to the Company of C$25 million. Each Unit will consist of one common
share and one-half of one common share purchase warrant. Each whole warrant
will be exercisable at a price of C$1.25 for a period of three years from the
closing date.
In addition, the Underwriters have been granted an option (the
"Over-allotment Option") to sell that number of additional Units as is equal
to 15% of the size of the offering for market stabilization and over-allotment
purposes. The Over-allotment Option may be exercised at any time, in whole or
in part, until that date which is 30 days following the closing date. The
offering is scheduled to close on or about February 13, 2007 and is subject to
certain conditions including, but not limited to, the receipt of all necessary
approvals including the approval of the Toronto Stock Exchange. The Company
will use its best efforts to list the warrants on the Toronto Stock Exchange
upon closing of the offering.
Proceeds of the offering will be used by the Company for general
corporate purposes.
The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or applicable exemption from the registration
requirements. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any State in which such offer, solicitation or sale would be unlawful.
