NANAIMO, BC, Dec. 16, 2019 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSX-V: AEP; OTC Markets: APEUF) is pleased to announce a proposed non-brokered private placement offering ("the Offering") for gross proceeds of up to $4,250,000.
The Offering will consist of up to 10,625,000 units (each a "Unit") at a price of $0.40 per Share. Each Unit will consist of one (1) common share of AEP plus one (1) non-transferrable common share purchase warrant (each a "Warrant"). Each whole Warrant will entitle the holder to purchase one additional common share at a price of $0.60 per share for a period of two years from the date of issuance.
The net proceeds of the Offering will be used for potential acquisition targets identified by the Company, general working capital, and capital equipment upgrades.
Subject to the approval of the TSX Venture Exchange, insiders of AEP will participate in the Offering, and AEP may pay finder's fees of up to 7% in cash or shares and 7% from warrants on the gross proceeds of the Offering to eligible persons. Closing of the Offering is subject to the approval of the TSX Venture Exchange. All securities issued under the offering will be subject to hold periods expiring four months and one day after the date of issuance. Additional restrictions may apply to securities issued to United States purchasers.
This news release does not constitute an offer to sell, or solicitation of an offer to buy, nor will there be any sale of any of the securities offered in any jurisdiction where such offer, solicitation or sale would be unlawful, including the United States of America. The securities being offered as part of the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and any applicable state securities laws, or pursuant to available exemptions therefrom.
About Atlas Engineered Products Ltd.
AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively, giving us a unique opportunity to consolidate a fragmented industry of independent operators.
Forward Looking Information
Information set forth in this news release contains forward-looking statements. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: Risks and uncertainties relating to the Company, including those to be described in the Management's Discussion and Analysis ("MD&A") for the Company's three and nine months ended September 30, 2019. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Atlas Engineered Products Ltd.
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