On February 26, 2008, IPICO Inc. (TSX VENTURE:RFD) announced that it had closed its previously announced short form public offering of 5,212,633 units ("Units") at a price of $1.20 per Unit, for gross proceeds of $6,255,160. The offering was underwritten by a syndicate led by Wellington West Capital Markets Inc. and included Desjardins Securities Inc. Each Unit consists of one common share of the Company and one common share purchase warrant. IPICO closed on a base offering of 5,000,000 Units as well as a partial exercise of the over-allotment option granted to the underwriters for an additional 212,633 Units.
The over-allotment option is exercisable for a period of 30 days from the date of the closing of the offering, to purchase up to an additional 750,000 Units and/or Warrants. If the over-allotment option is exercised in full, total gross proceeds of the offering will be approximately $6.9 million.
The net proceeds of the offering will be used to fund the deployment of IPICO's products under existing agreements, further development and certification of IPICO's products, expansion of its sales and product delivery capabilities, and for general working capital and corporate purposes.
IPICO was advised in this transaction by Allan Beach and Bozidar Crnatovic of Fasken Martineau, assisted by student-at-law Andrew Derksen.