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OTTAWA, March 9 /CNW Telbec/ - Allen-Vanguard (TSX:VRS) is pleased to announce today that it has closed its previously announced bought deal offering for gross proceeds of $50,000,000. The net proceeds from the offering will be used in furtherance of corporate development plans announced February 14, 2007, including acquisitions, and for working capital and general corporate purposes. The underwriters, Versant Partners Inc. and Paradigm Capital Inc., purchased 10,000,000 common shares from the Company at an issue price of $5.00 per share. In addition, the Company has granted the underwriters an option to purchase up to an additional 1,500,000 common shares (up to 15% of the offering) at the issue price of C$5.00 per share, for over-allotment and market stabilization purposes, which option shall be exercisable for 30 days following the closing of the offering.
The securities offered 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. Accordingly, subject to certain exceptions, these securities may not be offered, sold or delivered, and the short form prospectus and/or this press release do not constitute an offer to sell or a solicitation of an offer to buy any of the aforementioned securities within the United States or to or for the benefit of, U.S. persons (as defined in the U.S. Securities Act).
About Allen-Vanguard
Allen-Vanguard Corporation and its subsidiaries worldwide operate under the brand "Allen-Vanguard". Allen-Vanguard develops and markets technologies, tools and training for defeating and minimizing the effects of hazardous devices and materials, whether Chemical, Biological, Radiological, Nuclear or Explosive ("CBRNE"). Allen-Vanguard's equipment is in service with leading security and military forces in more than 120 countries. Products include Electronic Counter-Measures ("ECM") equipment for jamming remote detonation of terrorist devices, specialty security equipment for Explosive Ordnance Disposal ("EOD"), remote intervention robots for hazardous applications, vehicle barrier systems, and personal protective wear for use in dealing with bio-chemical agents. Allen-Vanguard is the sole, worldwide licensee and/or developer of patented technologies such as the Universal Containment System and CASCAD Foam for blast mitigation and decontamination of bio-chemical warfare agents. Head office operations are located in Ottawa, Ontario, Canada, with manufacturing operations in Stoney Creek, Ontario; Tewkesbury, U.K.; and Cork, Ireland, and sales offices in Canada, the U.S., the U.K. and Asia. Allen-Vanguard's shares are listed on The Toronto Stock Exchange (TSX: VRS).
This press release contains forward-looking statements, which reflect Allen-Vanguard's current expectations regarding future events. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Allen-Vanguard disclaims any obligation to publicly update or revise any such statements.
To find out more about Allen-Vanguard Corporation (TSX:VRS), visit our
website at www.allen-vanguard.com.
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