Thursday, 23 December 2010

Fundraising In At $6.9 Million

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 118.58 million
Fully Diluted: 134.33 million

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AeroMechanical executives have $6.9 million more reasons to be confident about the coming years after announcing the closing of the recently announced financing that was almost evenly split between a convertible debenture and a share offering.

AMA stated it will use the net funds to complete the next generation blue box, the afirs 228, which is scheduled for completion by the first quarter of 2011 and for working capital and business development objectives.

This financing started out with a goal of $6 million and was raised to a target of $8 million, before settling at nearly $7 million in realized funds.

In and of itself, that could be read as a testament to the faith investors have in AMA's future because all of this was done against a backdrop of shaky small cap markets and the aviation industry's continuing reluctance to open its coffers after the shock of the Great Recession in late '08 and '09.

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