Aeroquest International Limited

Aeroquest International Limited

April 15, 2011 16:23 ET

Aeroquest International Limited (TSX:AQL) Announces the Filing of a Short Form Prospectus

TORONTO, ONTARIO--(Marketwire - April 15, 2011) -


Attention business/financial editors and reporters:

Aeroquest International Limited (TSX:AQL) ("Aeroquest", or "the Company") today reported that it has filed a preliminary short form prospectus in connection with a best efforts offering (the "Offering") of units (each, a "Unit") in the capital of Aeroquest. Each Unit consists of one common share (a "Common Share") of the Company and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). The Offering is being made through a syndicate of agents led by Fraser Mackenzie Limited, and including Jennings Capital Inc., and Mackie Research Capital Corporation (collectively, the "Agents"). The Company has granted an over-allotment option (the "Over-Allotment Option") to the Agents, pursuant to which the Agents may purchase, for a period of 30 days following the closing of this Offering, additional Units (the "Over-Allotment Units"), in a maximum number equal to 15% of the number of Units sold pursuant to the Offering.

Final determination of the number of Units to be sold pursuant to the Offering will be determined in the context of the market prior to the filing of the final short form prospectus in respect of the Offering. The Units will be offered in the provinces of British Columbia, Alberta, and Ontario, Canada by way of a short form prospectus.

In consideration for the services to be rendered by the Agents under the Offering, the Agents will receive a cash commission of 7% of the gross proceeds of the Offering (including any Units issued as a result of the exercise of the Over-Allotment Option). The Agents will also receive nontransferable compensation warrants (the "Compensation Warrants") entitling the Agents to purchase, in the aggregate, that number of Common Shares that is equal to 5% of the aggregate number of Units and Over-Allotment Units sold pursuant to the Offering.

The Company intends to use the net proceeds of the Offering to fund ongoing capital expenditure and expansion plans and for general working capital purposes.

Closing of the Offering is subject to certain conditions including, but not limited to, the execution of a definitive agency agreement with the Agents, receipt of all necessary regulatory and stock exchange approvals including the receipt of listing approval by the Toronto Stock Exchange ("TSX") for: (i) the Common Shares included in the Units and the Over-Allotment Units, and (ii) the Common Shares issuable pursuant to the exercise of the Warrants included in the Units, the Warrants included in the Over-Allotment Units and the Compensation Warrants. Successful listing of such Common Shares will be subject to the Company fulfilling all of the listing requirements of the TSX.

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any U.S. state securities laws and may not be offered or sold in the United States, absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Aeroquest International

Aeroquest collects and interprets data that reveals what is at and beneath the earth's surface. Aeroquest applies the best available technology in its world-wide search for economic concentrations of mineral and petroleum resources and in the precision-mapping of the earth's surface and objects upon it. Aeroquest offers airborne geophysics surveys through Aeroquest Airborne, aerial geomatics surveys through Aeroquest Optimal, and the custom design and construction of geophysical sensors and instruments through Aeroquest Sensortech.

With over 150 employees and contractors, and a fleet of over two dozen helicopter and fixed wing survey systems worldwide, Aeroquest is surveying on every continent in the world where exploration activity is underway, and over its history has logged over 10 million line kilometers of fixed wing surveys and over 1 million line kilometers of helicopter surveys – enough to circle the globe over 300 times. More information about Aeroquest International can be found at

For Investors

This news release may include statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Future events and results may vary substantially from what the Company currently foresees. Discussion of the various factors that may affect future results is contained in the Company's recent filings, available on SEDAR.

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