Automodular Corporation
TSX : AM

Automodular Corporation

November 02, 2007 09:15 ET

Automodular Corporation Announces Closing of Treasury & Secondary Offering and Exercise of Over-Allotment Option

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Automodular Corporation (TSX:AM) ("Automodular" or the "Company") is pleased to announce the closing of its previously announced public offering for total gross proceeds to the Company of $7,800,000. An aggregate of 3,900,000 common shares were issued and sold by the Company at a price of $2.00 per common share. The over-allotment option granted to the underwriters was exercised in full on closing. In addition, 3,000,000 common shares were sold by Scotia Merchant Capital Corporation (the "Selling Shareholder") at a price of $2.00 per common share. The underwriting syndicate for the offering was led by GMP Securities L.P. and included Canaccord Capital Corporation.

The net proceeds from the offering will be used by the Company for working capital and general corporate purposes. The Company did not receive any proceeds from the secondary offering by the Selling Shareholder.

The sale by the Selling Shareholder of 3,000,000 common shares (representing approximately 13.6% of the issued and outstanding share capital of Automodular immediately prior to the closing of the offering) pursuant to the secondary offering under the short form prospectus gives rise to the obligation to file a news release. Following the closing of the offering, the Selling Shareholder and its joint actors directly and indirectly own or control an aggregate of 5,536,000 common shares representing approximately 21.3% of the Automodular shares. The Selling Shareholder will file a report describing the above transactions with applicable securities regulators, a copy of which will be available under the Automodular profile at www.SEDAR.com.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.

Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to five Original Equipment Manufacturer plants in Ontario and Ohio. The Company has five operating facilities and employs over 900 people.

This press release contains forward-looking statements that may involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company's periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Automodular Corporation
    Christopher Nutt
    Vice President, Finance
    (416) 861-0662 x 223
    Email: c.nutt@automodular.com