Tuesday, 14 December 2010

AMA's Previous Financing Rises & Changes

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


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There’s been a modification to the potential benefit of AMA’s bank account with today’s announcement that a higher fundraising target was set - up to $8 million - rather than $6 million as announced on December 6th.

In addition, the efforts will be split between a convertible debenture and a private placement as opposed to the previous plan that called for the entire amount to be in convertible debentures.

Now, Raymond James will make its best efforts to raise one half of the $8 million target through a private placement of $4 million while it and Byron Securities Limited continue on the same basis to raise the remaining $4 million through the previously announced debenture route.

The only other change is the deadline for all of the above was pushed up one day to Dec. 22nd.

The private placement portion calls for the issuance of 16 million units, each of which sells for $0.25 plus a warrant that allows for the purchase of one AMA share at $0.40 anytime over the next three years.

The net proceeds will be used to complete development of AMA’s next generation blue box called the afirs 228 and for working capital.

To read the full news release, please click here.