TSX Venture Exchange
Symbol "BRY"
EDMONTON, Feb. 7 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSXV:BRY) is pleased to announce that it has closed a $5,000,000 financing with HSBC Capital (Canada) Inc. ("HSBC Capital"). The financing consists of a $5,000,000 five year subordinate debenture ("Debenture") and the issuance of 250,000 common share purchase warrants ("Warrants"). Each Warrant entitles HSBC Capital to acquire one (1) Bri-Chem share at an exercise price of $2.00 for a period of 36 months from the date of issuance. Repayment of the principal amount of the Debenture begins in the 25th month with a balloon payment for the balance due and payable at the end of the 60th month.
Mr. Don Caron, Chairman of Bri-Chem stated, "We are very pleased to have HSBC Capital as part of our corporate team. They analyzed the opportunity and realized the potential in our vision. This relationship not only strengthens Bri-Chem now but also provides financial support for our future growth initiatives."
Bri-Chem will use the net proceeds from the financing to pursue potential future growth opportunities, working capital and general corporate purposes, which may include acquisitions and capital expenditures.
About Bri-Chem
Bri-Chem operates out of its head office located in Acheson, Alberta and its principal activity is the wholesale/distribution blending and packaging of drilling fluid supplies for the oil and gas industry. The Corporation provides over 100 domestic and foreign products to customers throughout Alberta, British Columbia and Saskatchewan.
Forward Looking Statements
From time to time, Bri-Chem may publish forward-looking statements relating to such matters as expected financial performance, business prospects, development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Bri-Chem undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.