Business
Imaging Dynamics Company Ltd. Closes Previously Announced Short Form Prospectus Offering
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/ CALGARY, May 14 /CNW/ - ...
About this update from Imaging Dynamics Company, Ltd.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES/\n\n\nCALGARY, May 14 /CNW/ - Imaging Dynamics Company Ltd. ("IDC" or the\n"Corporation") (TSX: IDL) is pleased to announce that it has closed its\npreviously announced public offering (the "Offering") of units ("Units"),\nannounced on April 25, 2008. The closing consisted of 24,690,200 Units at a\nprice of $0.335 per Unit for gross proceeds of $8,271,217. Each Unit consists\nof one common share (a "Common Share") in the capital of the Corporation and\none transferable Common Share purchase warrant (a "Warrant"). Each Warrant is\nexercisable into one Common Share at an exercise price of $0.40 subject to\nadjustment in certain events, at any time on or before 4:30 p.m. (Calgary\ntime) on the date (the "First Exercise Date") that is 12 months after the date\nof closing of the Offering (the "Closing Date") and at an exercise price of\n$0.50 subject to adjustment in certain events, at any time from 4:30 p.m.\n(Calgary time) on the First Exercise Date until 4:30 p.m. (Calgary time) on\nthe date that is 24 months after the Closing Date. The Units will separate\ninto Common Shares and Warrants immediately upon the Closing Date.\n\n\nThe Offering was led by Paradigm Capital Inc. and included Jennings\nCapital Inc. (collectively, the "Agents").\n\n\nThe net proceeds of the Offering will be used by the Corporation (i) to\nfund the Corporation's ongoing activities, (ii) for general working capital\npurposes, (iii) to reduce indebtedness under the Corporation's credit\nfacility, (iv) to reduce arrears for the supply of goods and services by Elcan\nOptical Technologies, A Division of Raytheon Canada Limited ("Elcan") to the\nCorporation by approximately US$4 million, pursuant to a forbearance agreement\n(the "Forbearance Agreement") dated April 17, 2008.\n\n\nThe Forbearance Agreement modified the terms of the general security\nagreement (the "GSA") between the Corporation and Elcan dated October 12, 2007\nwhereby the Forbearance Agreement allows Elcan to forbear the exercise of its\nenforcement rights under the GSA.\n\n\nThis news release does not constitute an offer to sell, or the\nsolicitation of an offer to buy, the Units in any jurisdictio...