FRANKLIN, Ind., Aug. 09, 2018 (GLOBE NEWSWIRE) -- IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) announces that it has secured a renewal of its existing line of credit and term loan facility with BMO Harris Bank (”BMO”). The renewal allows the Company to immediately deploy recently raised funds to purchase and install new capital equipment and supply inventory, which the Company believes will help it expand production capacity, reduce costs, and provide a hedge against supply uncertainty as demand increases for various materials.
The Company’s capital equipment purchase plans include the acquisition of several production machines, robots, and additional processing tools in both its Copper Alloy and Engineered Materials divisions. The Company also intends to increase inventory by purchasing additional copper and other materials to allow for increased billet production, improve sales quote success rates, and to a provide a supply hedge. IBC also intends to increase maintenance stock in order to reduce risks of equipment down time.
The renewal of both the BMO line of credit and term loan facility extends the facility until February 28, 2019. Approximately $3 million is available to the Company under the line of credit, and the term loan has a maximum of approximately $1.2 million.
In separate news, the Company announced that its board of directors has approved the issuance of up to a total of 641,035 common shares at a deemed price per share of between $0.308 and $0.376 to its non-executive directors and certain employees and consultants in consideration of their service to the Company for the period from January 2017 through July 2018. The issuance of the shares is subject to the approval of the TSX Venture Exchange. The shares will be subject to a four month and one day hold period from the date of issuance.
Mark A. Smith, Geoffrey Hampson, Michael Jarvis, Simon Anderson, and Chief Executive Officer Duncan Heinz currently hold an aggregate of approximately 11.9% of the issued and outstanding common shares of the Company. Each issuance of common shares to General Heinz and the non-executive directors constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and TSXV Policy 5.9 Protection of Minority Security Holders in Special Transactions. The Company is relying on the exemptions from the formal valuation and minority approval requirements contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, on the basis that the fair market value of the transaction does not exceed 25% of the Company’s market capitalization.
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
"Duncan Heinz”
David “Duncan” Heinz, President, CEO and Director
Contact:
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
Email: jsims@policycom.com
Website: www.ibcadvancedalloys.com
@IBCAdvanced $IB $IAALF #Beryllium #Beralcast
About IBC Advanced Alloys Corp.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC's Copper Alloys Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC's Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC's has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".
Cautionary Statements
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. 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.
Certain information contained in this news release may be forward-looking information or forward-looking statements as defined under applicable securities laws. Forward-looking information and forward-looking statements are often, but not always identified by the use of words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may" and "should" and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, beliefs as to expanded production capacity, cost reductions and hedging against supply uncertainty resulting from the deployment of recently raised funds, the Company’s capital equipment purchase plans and the Company’s intention to increase inventory and maintenance stock. Forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company or its customers operate, including the semiconductor manufacturing and oil and gas industries, risks associated with manufacturing activities, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. As a result of these risks and uncertainties, the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
Please see “Risks Factors” in our Annual Information Form available under the Company’s profile at www.sedar.com, for information on the risks and uncertainties associated with our business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.