IBC Advanced Alloys Corp.
TSX VENTURE : IB
OTCQB : IAALF

IBC Advanced Alloys Corp.

June 07, 2017 05:59 ET

IBC Advanced Alloys Announces Private Placement to Raise C$1.35 Million for Working Capital as Production Ramp-up Intensifies

FRANKLIN, INDIANA--(Marketwired - June 7, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

IBC Advanced Alloys Corp. (TSX VENTURE:IB)(OTCQB:IAALF) ("IBC" or the "Company"), a leading a leading beryllium and copper alloys company, plans to undertake a non-brokered private placement (the "Private Placement") of units ("Units") at an issue price of C$0.375 per Unit for gross proceeds of up to C$1,350,000 (the "Offering"), with a 25% oversubscription option. If the oversubscription option is fully exercised, IBC will issue 4.5 million Units and receive gross proceeds of $1,687,500 in connection with the Private Placement.

Each Unit will consist of one common share ("Common Share") of IBC and a one-half transferable share purchase warrant ("Warrant"). Each full Warrant shall be exercisable to acquire an additional Common Share of IBC at a price of C$0.45 for a period of two years from the closing date of the Private Placement. The Warrants will contain an acceleration provision, pursuant to which, the Warrant holders will either need to exercise the Warrants or have them expire within 60 days if IBC's common shares trade at C$0.90 or greater for 21 consecutive trading days. The acceleration clause will come into effect after the one-year anniversary of the Warrant issuance.

The Private Placement is subject to the approval of the TSX Venture Exchange ("TSX-V"). Directors and officers of the Company are expected to subscribe for between C$100,000 to C$300,000 of the Private Placement. The securities to be issued will be subject to a four-month-and-one-day resale restriction under Canadian law.

The funds raised under the Private Placement will be used to provide general working capital and to support a current production ramp-up necessary to meet growing customer orders, as well as to serve as a bridge financing until IBC has achieved sustained cash-flow-positive operations, which the Company estimates will be achieved by the end of the calendar year. As indicated in the Company's fiscal 2017 third quarter financial statements (details here), incoming product orders and sales are increasing in both the copper and beryllium alloys divisions. This requires that the Company maintain additional inventory to more efficiently meet customer product needs and delivery timetables, and a stronger cash position to bridge the gap between accounts receivable and accounts payable as the Company ramps up production. The Company has agreed to pay fees on the Private Placement of up to 2% cash and 2% compensation options, and the individual(s) involved can elect to take the cash portion of the fees in Units having the same terms as the Private Placement Units.

The Company currently has 30,346,590 common shares issued and outstanding.

About IBC Advanced Alloys Corp.

IBC is a leading beryllium and copper alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC's Copper Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC's Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC's has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".

Website:

@IBCAdvanced $IB $IAALF #Beryllium #Beralcast

Cautionary Statements

This news release was prepared by management of IBC, which takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This disclosure contains certain forward-looking statements about the Company's product orders and sales and the objective to achieve cash flow positive operations in this calendar year. There can be no assurance that product orders will remain strong or that cash flow positive operations will be achieved in this calendar year.

These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company or its customers operate, including the semiconductor manufacturing and oil and gas industries, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.

In addition there are risks and uncertainties associated with manufacturing activities. Therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. As a result, the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements . As a result, IBC cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements IBC makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law. Additional information identifying risks and uncertainties is contained in IBC's filings at www.sedar.com.

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