VRB Power Systems Inc.
TSX VENTURE : VRB

July 18, 2007 08:03 ET

VRB Power Systems Announces $12.5 Million Bought Deal

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

VRB Power Systems Inc. (TSX VENTURE:VRB) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Research Capital Corporation and PI Financial Corp. pursuant to which the underwriters have agreed to purchase 33,000,000 Common Shares on a bought deal basis, at a price of $0.38 per Common Share for aggregate gross proceeds to the Company of $12,540,000. The underwriters have the option to purchase an additional 4,950,000 Common Shares at the issue price at any time prior to 30 days following the closing date for additional gross proceeds of $1,881,000. The Company will file a preliminary short form prospectus in British Columbia, Alberta and Ontario for the purpose of qualifying the Common Shares for distribution to the public as soon as possible and the offering is scheduled to close on or about August 8, 2007. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The proceeds of the offering will be used for capital expenditures relating to the Company's assembly facility and general working capital purposes.

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

Contact Information

  • VRB Power Systems Inc.
    Simon Clarke
    Executive Vice President, Corporate Development
    (604) 697-8820
    or
    VRB Power Systems Inc.
    Investor Relations
    (604) 697-8835
    Website: www.vrbpower.com