Semcan Inc.
TSX VENTURE : STT

Semcan Inc.

August 24, 2007 10:55 ET

Semcan Inc. Completes Final Tranche of Previously Announced Private Placement

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2007) - Semcan Inc. (TSX VENTURE:STT)("SEMCAN") is pleased to announce that it has closed the third and final tranche of its previously announced brokered private placement for the aggregate gross proceeds of $7,500,000, exercising the remainder of the over allotment option. The private placement offering up to $6,250,000, subject to a 20% over allotment option, consisted of up to 6,944,444 Units offered at $0.90 per Unit, subject to a 20% over allotment option. Each Unit consisted 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 third tranche, SEMCAN issued 111,233 Units for gross proceeds of $100,110. 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 24, 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") and announced the completion of the second tranche on August 16, 2007 which raised $2,071,350. Of the $7,500,000 raised 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. acted as the sole lead agent and received a cash commission equal to 7% of the gross proceeds of the private placement and non-transferable warrants to purchase 7% of the number of Units sold pursuant to the private placement exercisable at a price of $0.90 per Unit.

The private placement is subject to the final approval of the TSX Venture Exchange.

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