VRB Power Systems Inc. announced it has entered into an agreement with a syndicate of underwriters led by Sprott Securities Inc. and including Clarus Securities Inc. and Research Capital Corp., pursuant to which the underwriters have agreed to purchase 15,384,616 common shares on a bought-deal basis, at a price of 65 cents per common share for total gross proceeds to the company of $10 million. The underwriters have the option to purchase an additional 2,307,692 common shares at the issue price at any time prior to 30 days following the closing date for additional gross proceeds of $1.5 million.
The company will file a preliminary short form prospectus in British Columbia, Alberta and Ontario for the purpose of qualifying the common shares for distribution to the public as soon as possible and the offering is scheduled to close on or about Sept. 29, 2006. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities. Net proceeds of the offering are to be used for capital expenditures relating to the company's assembly facility, working capital and general corporate purposes.
