Monday, 6 December 2010

AeroMechanical Beefing Up Its Bank Account

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 103.6 million
Fully Diluted: 115.4 million


AeroMechanical pulled the trigger on a $6 million private placement of convertible secured debentures that will allow it to complete development of the next generational blue box, called the afirs 228.

It also intends, it announced Dec. 6th, to salt funds away for working capital and other business developments.

The syndicate of agents will be led by Raymond James, with the help of Byron Securities Limited. Details of the “best efforts” financial instrument are that the debentures will mature in four years and carry an 8% per year interest rate.

The debentures can also be converted into common shares prior to maturity at $0.40 per share.

Also, each $1 dollar paid for a debenture entitles the buyer to 1.25 common share purchase warrants that are exercisable to a period of four years at $0.75.
The offering is expected to close December 21st. There are other provisions in the debenture that can be read here in the press release.