VANCOUVER, Sept. 28, 2012 /PRNewswire/ - Avcorp Industries Inc. ("Avcorp" or the "Company") (TSX: AVP) announced today that it has closed a private placement of 23,172,552 common shares of Avcorp at a price of $0.042 per share to Panta Canada B.V. ("Panta") for gross proceeds of approximately $973,247 (the "Private Placement"). The proceeds from the Private Placement will be used for general working capital purposes.
The Company further announces that it has issued 25,300,000 common shares of the Company to Panta pursuant to the terms of a loan agreement entered into between the Company and Panta dated April 12, 2010 (the "Loan Agreement").
Panta agreed to convert the principal amount due under the Loan Agreement of $1,771,000 into common shares of the Company at a price of $0.07 per share. The Loan Agreement and the conversion of the principal (the "Conversion") has been approved by the Toronto Stock Exchange.
Following completion of the Private Placement and the Conversion, Panta owns approximately 53.7% of the outstanding common shares of Avcorp.The aforementioned transactions have reduced Avcorp's debt by $1,771,000 and increased equity by approximately $2,744,247. About Avcorp Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, and Bombardier. With more than 50 years of experience, over 400 skilled employees and 354,000 square feet of facilities in Delta BC and Burlington ON, Avcorp offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower‐cost, light weight, strong, reliable structures. Our Burlington location also offers composite repairs for commercial aircraft. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).