CTW completes private placement financing and raises gross proceeds of CDN $21.8 Million
Catch the Wind Ltd. (TSX-V: CTW), developer and manufacturer of the Vindicator® laser wind sensor (LWS) and other sensor products, announced today that it has completed a private placement of 16,743,000 common shares each at a price of CDN $1.30, generating gross proceeds of CDN $21.8 million.
“The overwhelming interest we received from investors, particularly from international institutions focused on the clean-tech sector, and the successful close of the private placement that was priced at a premium to market reaffirm our belief that the Vindicator LWS has enormous potential to drive higher wind energy profits, improve turbine performance and reduce wind farm operating costs,” said Phil Rogers, President and CEO of Catch the Wind. “The proceeds will be used to accelerate the next stage of our growth, particularly as we complete our current field trials and expand our manufacturing capacity.”
A senior officer and a director of the Company also participated in the private placement offering, purchasing a total of 25,000 common shares.
National Bank Financial Inc., Research Capital Corporation and Canaccord Capital Corporation served as agents for the private placement, and received a commission of 6.0% of the gross proceeds of the offering (other than in respect of shares purchased by insiders) in cash, being approximately CDN $1.3 million. The agents also received 1,003,080 compensation options equal to 6.0% of the common shares issued under the offering (other than in respect of shares purchased by insiders). Each compensation option will entitle the agents to purchase one common share of the Company at a price of CDN $1.30 for a period of 24 months from today.
All securities issued under the private placement, including the compensation options granted to the agents, will be subject to a four month hold period commencing today.
The net proceeds of the private placement, approximately CDN $20.3 million, will be used to develop further the efficient manufacture of the Company’s Vindicator® LWS and other laser-based sensor products. The net proceeds will also be used for general working capital purposes.
As a result of the private placement, Catch the Wind’s total number of shares outstanding is 54,789,784.
Forward-Looking Information
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Catch the Wind. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Catch the Wind believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Catch the Wind disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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.
For more information, please contact:
Catch the Wind Ltd.
Claudia Jaques
Vice President and General Counsel
703 393 0754
cjaques@catchthewindinc.com
The Equicom Group
Joe Racanelli
416 815 0700 ext. 243
jracanelli@equicomgroup.com
