HMZ Metals Inc.
CNSX : HMZ

HMZ Metals Inc.

September 02, 2009 15:18 ET

HMZ Announces Partial Revocation of Cease Trade Order and Private Placement

TORONTO, ONTARIO--(Marketwire - Sept. 2, 2009) - HMZ Metals Inc. (the "Company") (CNSX:HMZ) announces that the cease trade orders issued by the British Columbia securities commission on May 4, 2009, and by the securities commissions of Ontario and Manitoba on May 13, 2009, have all been partially revoked, effective as of August 24, 2009, in Ontario and Manitoba, and August 26, 2009, in British Columbia. The partial revocation orders have been granted in order to enable the Company to consolidate its common shares and engage in a private placement.

Share Consolidation

At a previous annual and special meeting held on June 30, 2008, the shareholders of the Company approved a consolidation of the Company's common and special shares on the basis of one (1) post-consolidated share for every five (5) pre-consolidated shares (the "Consolidation"). Prior to the Consolidation there were 109,998,400 issued and outstanding common and special shares. As of September 1, 2009, the date that the Consolidation became effective, the Company has 21,997,680 shares outstanding.

Shareholders will receive a letter of transmittal from Capital Transfer Agency Inc., the Company's transfer agent, with instructions for exchanging their pre-consolidation shares.

Private Placement

The Company intends to complete a non-brokered private placement of up to 8,800,000 units at a price of $0.05 per unit ("Unit") for gross proceeds of up to $440,000. Each unit shall be comprised of one common share in the capital of the Company ("Common Share"), one common share purchase warrant (each, a "Warrant") and one promissory note. Each Warrant shall entitle the subscriber to purchase one Common Share at an exercise price of $0.075 per Common Share for a period of two years following the close of the financing. The promissory notes shall entitle the subscriber to repayment by the Company of up to a maximum of the total amount of the subscriber's subscription.
The proceeds of the financing will be used to update the Company's public disclosure record by filing its currently overdue financial information, and subsequently to apply for a full revocation of all cease trade orders issued against the Company.

The securities issued pursuant to the private placement will be subject to a 4 month hold period from the date of issuance. The transaction is subject to regulatory approval.

This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Shares Outstanding: 21,997,680

THIS PRESS RELEASE WAS PREPARED BY HMZ METALS INC. THE CNSX DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • HMZ Metals Inc.
    Kerry Smith
    President
    (416) 214-3270 ext 222