Semcan Inc.
TSX VENTURE : STT

Semcan Inc.

April 27, 2011 11:39 ET

Semcan Inc. Announces Closing of the Second and Final Tranche of Financing for Gross Proceeds of $483,322

TORONTO, ONTARIO--(Marketwire - April 27, 2011) -Semcan Inc. (TSX VENTURE:STT) ("Semcan or the "Company") today announced that it has successfully closed the second and final tranche of its previously-announced financing.

On April 26, 2011, the Company closed the second and final tranche of the financing for gross proceeds of $483,322 through a private placement to accredited investors (collectively, the "Lenders") of a secured convertible loan (the "Loan"). The total amount raised under the Loan in two tranches was $2,497,842. The terms of the Loan were announced in the Company's press releases of March 7, 2011, March 23, 2011, April 7, 2011 and April 15, 2011.

The net proceeds of the Loan will be used to repay $100,000 of existing debt and for working capital purposes.

The Loan interest rate is 10% per annum, paid quarterly in cash. The term is three (3) years, with the Company having the right to repay the Loan in cash after the first twelve (12) months of the term upon providing the Lenders with forty-five (45) days' written notice. Any such early repayment must apply to the full outstanding balance of the Loan. The early repayment privilege will be available to the Company only if the Company's common shares have traded at or above $0.25 per share for the twenty (20) business days prior to the date of the Company providing notice to the Lenders of its intent to repay the Loan. The Loan is convertible in full or in part at any time until maturity into units (the "Units"), at the option of the Lenders at a conversion price of $0.14 per Unit. Each Unit is comprised of one (1) common share and one-half (½) of a common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable to receive one (1) common share at a price of $0.14 per share, with the Warrants expiring at the original maturity date of the Loan.

The securities issued pursuant to the Loan are subject to a four-month hold period from the date of issuance. The Loan is subject to the final approval of the TSX Venture Exchange.

About Semcan Inc.

Semcan is a supplier of industrial processes and environmental solutions with specific emphasis on water remediation and emission control systems to the North American markets.

Caution Regarding Forward-Looking Information and Non-GAAP Measures

Forward-Looking Information

This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and expectations and are based on information currently available to management of Semcan. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including risks outlined under "Risk Factors" in our Annual Information Form, which is posted at www.sedar.com. In evaluating these statements, investors should specifically consider various factors, including such risks as Investment Risk; Business Valuations; Condition of Capital Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate Risk; Competition; and Reliance on Key Suppliers. One or more of these "Risk Factors" could cause actual events or results to differ materially from any forward-looking statement. These factors should not be considered exhaustive. Although the forward-looking statements contained in this press release are based on what management of Semcan considers to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and none of Semcan nor its directors assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.

Neither the 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.

Contact Information

  • Semcan Inc.
    David Deacon
    CEO
    (905) 875-5577