Railpower Technologies Corp. completes public offering raising net proceeds of approximately $32.0 million
TSX: P / RLPPF.PK
MONTREAL, Feb. 13 /CNW/ - Railpower Technologies Corp. (TSX: P) (the "Company") is pleased to announce that it has closed its previously announced public offering (the "Offering") of 34,500,000 units ("Units") at a price of $1.00 per Unit for aggregate gross proceeds to the Company of $34,500,000. The Offering included the exercise in full of the underwriters' over-allotment option to purchase an additional 4,500,000 Units. Each Unit consisted of one common share in the share capital of the Company ("Common Share") and one-half of one Common Share purchase warrant. Each whole Common Share purchase warrant will entitle the holder thereof to purchase one Common Share at a price of $1.25, on or before February 12, 2010. The Units were sold through a syndicate of underwriters co-led by Canaccord Capital Corporation and Sprott Securities Inc., and included National Bank Financial Inc., Paradigm Capital Inc. and Pacific International Securities Inc. The Company intends to use the net proceeds of the offering as follows: approximately $20.0 million for working capital purposes to: (i) finance the fulfillment of the Company's current orders and future orders, depending on the payment terms; and (ii) to support the level of inventory. The balance of approximately $12.0 million will be used for continued technology research and development purposes and new business development activities.