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Allen-Vanguard Corporation Announces Offering of Common Shares
Allen-Vanguard Corporation Announces Offering of Common Shares.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT\n\n\nAUTHORIZED OR INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE\n\n\nSERVICES OR FOR PUBLICATION OR DISSEMINATION IN THE UNITED STATES/\n\n\nOTTAWA, Aug. 31 /CNW Telbec/ - Allen-Vanguard Corporation\n("Allen-Vanguard" or the "Company") (TSX:VRS) is pleased to announce that it\nhas filed its preliminary short form prospectus with Canadian securities\nregulatory authorities in connection with a public offering of common shares\nof the Company ("Common Shares") in all provinces of Canada (the "Offering").\nAggregate gross proceeds are expected to be approximately $200,000,000. The\nOffering will be lead by Genuity Capital Markets and include Paradigm Capital\nInc., Versant Partners Inc. and Canaccord Adams (together, the\n"Underwriters"). Oppenheimer & Co. Inc. will participate as a special selling\ngroup member in the Offering of Common Shares on an exempt basis in the United\nStates. The Underwriters will have an option, exercisable for a period of 30\ndays following the closing date of the Offering, to purchase from the Company\nthat number of common shares representing up to 15% of the Offering.\n\n\nAs disclosed in the Company's press release dated August 3, 2007, the\nacquisition of Med-Eng Systems Inc. (the "Med-Eng Acquisition") will be\nfinanced through a term debt facility, a revolver facility, subordinated debt,\ncash reserves available and the private placement of subscription receipts,\nwhich private placement closed on August 15, 2007 (the "Private Placement").\n\n\nThe net proceeds from the Offering will be used, in order of priority:\n(i) to repurchase $150 million of subordinated debt; (ii) to repurchase from\nthe vendors of Med-Eng the portion of the subordinated debt representing the\nexcess working capital of Med-Eng at the closing of the Med-Eng Acquisition;\nand (iii) to repay a portion of the term debt facility.\n\n\nIn connection with the term debt facility, the Company has agreed,\nsubject to regulatory approval, to issue to the arrangers thereof, common\nshare purchase warrants (the "Arrangers' Warrants") to acquire in the\naggregate 3,000,000 Common Shares of the Company, provided that the number of\nCommon Shares issuable upon the exe...