| News Release |
November 20, 2009 |
| AeroMechanical Services Ltd. |
(TSX-V -AMA) |
AeroMechanical Services Ltd. Announces Closing of Brokered Private Placement
AeroMechanical Services Ltd.
TSX-V Trading Symbol "AMA"
A Tier 2 Industrial Issuer
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
16:05 EST Friday, November 20, 2009
CALGARY (Business Wire) -- AeroMechanical Services Ltd. (AMA) today announced that it has closed it previously announced brokered private placement. Max Capital Markets Ltd. acted as the agent for the offering. An aggregate of 16,000,000 Units (the "Units") of the Corporation were issued at a price of $0.50 per Unit (the "Offering"). Each Unit is comprised of one common share (a "Common Share") and half of one common share purchase warrant (a "Purchase Warrant"). Each whole Purchase Warrant is exercisable into one Common Share at an exercise price of $0.75 for 18 months from the closing date of the Offering.
Max Capital Markets Ltd. were paid a cash commission of $640,000 in connection with the Offering. In addition, Max Capital Markets Ltd. were issued agent's warrants to acquire up to that number of Common Shares, equal to 7% of the number of Units issued, being 1,120,000 agent warrants ("Agent Warrants"), at a price of $0.50 per Agent Warrant for a period of 24 months from the date of issue.
The gross proceeds received by the Corporation from the sale of Units will be used to support the integration of the Corporation's products with L-3 products for the teaming agreement recently announced as well as completion of the next generation afirs 228 product that is required to meet forthcoming regulatory changes in Europe and elsewhere.
All of the securities issued pursuant to this private placement are subject to a 4-month hold period. Completion of the private placement is subject to the final approval of the TSX Venture Exchange.
In connection with the Offering, Mr. Bill Tempany, Chief Executive Officer of the Corporation, and his spouse, (the "Shareholders") acquired 1,200,003 Units pursuant to Offering. The Shareholders sold, from their personal holdings, an aggregate of 1,200,003 Common Shares of the Corporation at a price of $0.525 per share to members of the public with the assistance of the Agent through the facilities of the TSX Venture Exchange. None of the Common Shares sold by the Shareholders are subject to any hold period restrictions.
About AeroMechanical Services Ltd.
AeroMechanical Services Ltd. provides under the brand name, FLYHT, proprietary technological solutions and services designed to reduce costs and improve efficiencies in the airline industry. The company has successfully patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, afirs UpTime, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real-time.
afirs, UpTime, FLYHT, FlyhtStream and aeroQ are Trade Marks of AeroMechanical Services Ltd.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
For further information contact:
afirs, UpTime, FLYHT and aeroQ are Trade Marks of AeroMechanical Services Ltd.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
Not for Distribution to United States Newswire Services or for Dissemination in the United States. |