IBC Advanced Alloys Corp (IAALF)

[Slashnuts]

IBC Completes Offering, Several Opportunities on The Horizon!$!$

FRANKLIN, Ind., June 06, 2018 (GLOBE NEWSWIRE) -- IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V:IB) (OTCQB:IAALF) is pleased to announce that it has closed its previously announced short form prospectus offering (the “Offering”) of debenture units (“Debenture Units”) and convertible debenture units of the Company (“Convertible Debenture Units” and, together with the Debenture Units, the “Offered Units”) to fund an expansion of its production capacity and for other purposes. The Offering raised gross aggregate proceeds to the Company of approximately C$4.1 million, and was led by Mackie Research Capital Corporation as lead agent and sole bookrunner on behalf of a syndicate of agents (collectively, the “Agents”).

“We were very pleased with the strong response to this offering from both new and existing investors, and I want to thank each and every one of them for their support and their vote of confidence in the future of IBC,” said Major General Duncan Heinz (USMC, ret.), President and CEO of IBC. “Having achieved operational profitability this last quarter for the first time since 2008, we are well positioned and adequately funded to continue focus on gross margin improvements and to take advantage of several opportunities for growth on our horizon.”

Pursuant to the Offering, the Company issued an aggregate of 182 Debenture Units and 3,987 Convertible Debenture Units at a price per Offered Unit of C$1,000 (the “Offering Price”). Each Debenture Unit consists of one 9.5% unsecured debenture of the Company in the principal amount of $1,000 (each, a “Debenture”) with interest payable semi-annually in arrears on June 30 and December 31 of each year and maturing five years from the date the Debentures are issued, and 2,300 common share purchase warrants (each, a “Warrant”) expiring 60 months after the date of issuance of such Warrants. Each Convertible Debenture Unit consists of one 8.25% unsecured convertible debenture of the Company in the principal amount of $1,000 (each, a “Convertible Debenture”), convertible into common shares at a conversion price of $0.31 per common share at the option of the holder, with interest payable semi-annually in arrears on June 30 and December 31 of each year and maturing five years from the date the Convertible Debentures are issued, and 2,300 Warrants expiring 60 months after the date of issuance of such Warrants. Each Warrant will entitle the holder thereof to purchase one common share (“Common Share”) of the Company (each, a “Warrant Share”) at an exercise price of $0.37 per Warrant Share at any time up to 60 months following the closing date of the Offering.
The Offered Units were issued pursuant to the terms and conditions of an agency agreement dated May 28, 2018 between the Company and the Agents (the “Agency Agreement”). Pursuant to the Agency Agreement, the Agents were: (a) paid a cash commission equal to 6.75% of the gross proceeds of the Offering; and (b) issued 1,086,253 broker warrants (the “Broker Warrants”).
The Company intends to use the net proceeds of the Offering to invest in capital equipment necessary for a planned expansion of production capacity, increase inventory to support greater sales conversion and more efficient product delivery, address maintenance and stock and for working capital and general corporate purposes.



On Behalf of the Board of Directors:
"Duncan Heinz”
David “Duncan” Heinz, President, CEO and Director

http://www.globenewswire.com/news-release/2018/06/06/1517821/0/en/IBC-Advanced-Alloys-Closes-Short-Form-Prospectus-Offering-of-Approximately-C-4-1-Million.html

Good Luck To All!$!$