Thursday, 13 March 2008

AeroMechanical Closes $4.5 Million Financing

Demand exceeded the original share supply in a bought deal private placement causing AeroMechanical to close the financing at $4.5 million - $1.5 million above the original target.

Research Capital Corporation acted as the underwriter.

Under the deal, AeroMechanical issued 4.5 million units at $1 per unit. Each unit consists of one common share and one half of one common share purchase warrant.

That will allow the holder of each whole warrant to acquire one common share for a period of two years from the March 10th closing date at $1.30 per common share. Buyers are subject to a four-month holding period.

AeroMechanical said it would used the net proceeds to fund its working capital needs and for general corporate purposes.

To read the entire press release please click here.