MELFORT,
SK, Oct. 29, 2014 /CNW/
- Hodgins Auctioneers Inc. (HA-TSX.V) ("Hodgins" or the
"Company") is pleased to announce the signing of a non-binding
letter of intent to purchase all of the issued and outstanding
shares of an oilfield services company operating out of northwest
Alberta. Details are
confidential pending due diligence review and execution of a
definitive binding arrangement.
The Company has sought TSX Venture Exchange
("TSXV") approval for a proposed non-brokered private placement of
up to 10,000,000 units at a price $0.05 per unit for gross proceeds of up to
$500,000. Each unit will be
comprised of one common share in the capital of Hodgins and one
half of one common share purchase warrant. Each full warrant
will entitle the holder to purchase one common share at a price of
$0.075 per common share exercisable
no later than the date that is one year from the date of issuance
of such warrant provided. All of the securities issued under
the private placement will be subject to a four month resale
restriction and will contain a legend which will detail the resale
restriction. There is no minimum subscription under the
private placement and Hodgins may close the offering in several
tranches; however, the private placement must be concluded by
December 31, 2014. The proceeds of
the private placement will be unallocated and may be used for
working capital or to partially fund acquisitions. In
connection with this private placement, Hodgins will pay cash
finder's fees equal to 8% of the funds raised to eligible finders
who introduce subscribers to the private placement and issue one
common share and one finder's fee warrant for every 10 units issued
to eligible subscribers. Each finder's fee warrant will be
issued to finders on the same terms as the warrants comprising the
units.
Grant Hodgins, CEO
of Hodgins Auctioneers stated "This agreement provides an anchor
for Hodgins Auctioneers to expand its business in the province of
Alberta, and follows the company's
strategy to diversify its business."
About Hodgins Auctioneers Inc.
Headquartered in Melfort, Saskatchewan for more than 50 years,
Hodgins Auctioneers is a provider of professional auction services.
Hodgins is renowned for its experienced Auctioneers, award-winning
promotions, dependable results and commitment to providing the
ultimate marketplace for the sale of assets by auction.
Neither the 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 Hodgins Auctioneers Inc.