Semcan Inc.
TSX VENTURE : STT

Semcan Inc.

August 16, 2007 10:29 ET

Semcan Inc. Completes $2,071,350 Second Tranche of Private Placement

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) - Semcan Inc. (TSX VENTURE:STT)("SEMCAN") announces it has closed the $2,071,350 second tranche of its previously announced brokered private placement for aggregate gross proceeds to date of $7,399,890, exercising in part, the over allotment option. The private placement offering up to $6,250,000, subject to a 20% over allotment option, consists of up to 6,944,444 Units offered at $0.90 per Unit, subject to a 20% over allotment option. Each Unit consists of one common share and one half of one warrant. Each whole warrant is exercisable to acquire one common share of SEMCAN for eighteen months at a price of $1.25 per share. On closing the second tranche, SEMCAN issued 2,301,500 Units for gross proceeds of $2,071,350. The common shares and warrants comprising the Units and the common shares issuable on the exercise of the warrants will be subject to resale restrictions until December 16, 2007.

On July 24, 2007, SEMCAN announced the completion of the first tranche of the private placement raising $5,328,540 and the acquisition of Stanco Projects Ltd. ("Stanco"). Of the $7,399,890 raised to this point pursuant to the private placement, $4,100,000 was used to fund part of the acquisition of Stanco, which was also completed on July 24, 2007, and the balance of the net proceeds will be used for general working capital purposes.

M Partners Inc. is acting as sole the lead agent and will receive a cash commission equal to 7% of the gross proceeds of the private placement and will also receive nontransferable warrants to purchase 7% of the number of Units sold pursuant to the private placement exercisable at a price of $0.90 per Unit. SEMCAN paid a cash commission of $144,994.50 and issued 161,105 brokers warrants in respect of the second tranche closing.

The TSX Venture Exchange Final Exchange Bulletin will be issued upon closing of the final tranche of the private placement offering for both the private placement and the previously completed acquisition of Stanco Projects Ltd.

About SEMCAN

SEMCAN is a growth company expanding through acquisitions within the Industrial and Distribution sectors. SEMCAN seeks out well managed profitable companies that meet certain financial parameters. SEMCAN works with existing management to grow the acquired companies both organically and through further complementary acquisitions. SEMCAN provides the central finance and administrative functions, allowing operational management to remain focused on bottom line profitability thereby increasing shareholder value.

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including the risks associated with operations and sales;; and risks associated with margins, suppliers and customers and risks associated with foreign exchange fluctuations, among others. These forward-looking statements represent the Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Semcan Inc.
    Phil Jamieson
    Chairman
    (905) 564-8665