VANCOUVER, Sept. 28, 2012 /PRNewswire/ - Avcorp Industries Inc. ("Avcorp" or
the "Company") (TSX: AVP) announced today that it has closed a private
placement of 23,172,552 common shares of Avcorp at a price of $0.042
per share to Panta Canada B.V. ("Panta") for gross proceeds of
approximately $973,247 (the "Private Placement"). The proceeds from
the Private Placement will be used for general working capital
purposes.
The Company further announces that it has issued 25,300,000 common
shares of the Company to Panta pursuant to the terms of a loan
agreement entered into between the Company and Panta dated April 12,
2010 (the "Loan Agreement").
Panta agreed to convert the principal amount due under the Loan
Agreement of $1,771,000 into common shares of the Company at a price of
$0.07 per share. The Loan Agreement and the conversion of the
principal (the "Conversion") has been approved by the Toronto Stock
Exchange.
Following completion of the Private Placement and the Conversion, Panta
owns approximately 53.7% of the outstanding common shares of Avcorp.
The aforementioned transactions have reduced Avcorp's debt by $1,771,000
and increased equity by approximately $2,744,247.
About Avcorp
Avcorp designs and builds major airframe structures for some of the
world's leading aircraft companies, including BAE Systems, Boeing, and
Bombardier. With more than 50 years of experience, over 400 skilled
employees and 354,000 square feet of facilities in Delta BC and
Burlington ON, Avcorp offers integrated composite and metallic aircraft
structures to aircraft manufacturers, a distinct advantage in the
pursuit of contracts for new aircraft designs, which require
lower‐cost, light weight, strong, reliable structures. Our Burlington
location also offers composite repairs for commercial aircraft. Avcorp
is a Canadian public company traded on the Toronto Stock Exchange
(TSX:AVP).
"signed"
MARK VAN ROOIJ
PRESIDENT and CHIEF EXECUTIVE OFFICER
Forward-Looking Statements
This release should be read in conjunction with the Company's unaudited
financial statements contained in the Company's Annual Report and with
the quarterly financial statements and accompanying notes filed with
Sedar (www.sedar.com).
Certain statements in this release and other oral and written statements
made by the Company from time to time are forward-looking statements,
including those that discuss strategies, goals, outlook or other
non-historical matters; or projected revenues, income, returns or other
financial measures. These forward-looking statements are subject to
risks and uncertainties that may cause actual results to differ
materially from those contained in the statements, including the
following: (a) the extent to which the Company is able to achieve
savings from its restructuring plans; (b) uncertainty in estimating the
amount and timing of restructuring charges and related costs; (c)
changes in worldwide economic and political conditions that impact
interest and foreign exchange rates; (d) the occurrence of work
stoppages and strikes at key facilities of the Company or the Company's
customers or suppliers; (e) government funding and program approvals
affecting products being developed or sold under government programs;
(f) cost and delivery performance under various program and development
contracts; (g) the adequacy of cost estimates for various customer care
programs including servicing warranties; (h) the ability to control
costs and successful implementation of various cost reduction programs;
(i) the timing of certifications of new aircraft products; (j) the
occurrence of further downturns in customer markets to which the
Company products are sold or supplied or where the Company offers
financing; (k) changes in aircraft delivery schedules or cancellation
of orders; (l) the Company's ability to offset, through cost
reductions, raw material price increases and pricing pressure brought
by original equipment manufacturer customers; (m) the availability and
cost of insurance; (n) the Company's ability to maintain portfolio
credit quality; (o) the Company's access to debt financing at
competitive rates; and (p) uncertainty in estimating contingent
liabilities and establishing reserves tailored to address such
contingencies.
SOURCE Avcorp Industries Inc.