EDMONTON, ALBERTA--(Marketwired - Sept. 23, 2015) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION OVER UNITED STATES NEWS WIRE SERVICES
Synodon Inc. ("Synodon" or the "Company") (TSX VENTURE:SYD) is pleased to announce the successful closing of its previously announced rights offering which expired on September 22, 2015 (the "Rights Offering"). The Rights Offering generated gross proceeds of approximately CDN $2.94 million which will be used to retrofit the existing realSens™ instrument, procure new realSens™ instruments and for general working capital purposes.
The Company issued an aggregate of 58,728,888 Class A Voting Common Shares (the "Common Shares") of the Company at a subscription price of $0.05 pursuant to the Rights Offering including 36,932,524 Common Shares to Cranberry Capital Inc. ("Cranberry"), a major shareholder of the Company. Mr. Paul van Eeden, who is currently a director and Executive Chairman of Synodon, is also the President of (and exercises control and direction over) Cranberry. As a result of the Rights Offering the Company now has a total of 143,369,607 Common Shares issued and outstanding and Cranberry holds 55,398,786 Common Shares (38.64%) of the outstanding Common Shares. Paul van Eeden also holds options exercisable for an additional 200,000 Common Shares, and therefore controls 55,598,786 Common Shares (38.78%) of the outstanding Common Shares on a partially diluted basis. Cranberry advises that it acquired the Common Shares for investment purposes and that it may acquire further Common Shares, or dispose of its holdings of Common Shares as investment conditions warrant. Cranberry's office is located at 205 - 713 Davis Drive, Newmarket, Ontario. For further information, including a copy of the early warning report, please contact Paul van Eeden at (416) 727-1908.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.
Synodon Inc. (www.synodon.com) provides advanced aerial integrity management services to oil and gas pipeline operators including natural gas and liquid hydrocarbon leak detection, pipeline threat assessment, vegetation encroachment, water crossing analysis and other custom services.
This press release includes forward-looking statements about Synodon Inc., including the expected use of the funds raised by the Rights Offering and the benefits therefrom. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'intends', 'plans', 'believes' or negative versions thereof and similar expressions.
Forward-looking statements reflect our current beliefs and are based on information currently available to us and on assumptions that we believe are reasonable. These assumptions include, but are not limited to, outcomes of the retrofit of the current realSens™ instrument, the procurement of new realSens™ instruments and future capital and other expenditures (including the amount, nature and sources of funding thereof). Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as they are subject to a number of significant risks and uncertainties which can be beyond our control. These include, but are not limited to, general economic conditions in the countries that we are pursuing contracts in, currency fluctuations and other changes in the competitive environment that Synodon operates in. For more information, please see the discussion on the principal risks that could affect our results under the section "Risks Relating to Our Business" of Synodon's 2014 MD&A and "Risk Factors" in the final short form prospectus. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements in this press release are made to describe management's expectations and assist shareholders in understanding our financial position. Readers are cautioned that the forward-looking statements presented in this press release may not be appropriate for other purposes. We are under no obligation (and expressly disclaim any obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise unless specifically required by applicable securities legislation.
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.
Source: Marketwired (Canada)
(September 23, 2015 - 8:03 AM EDT)
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