Atlas Engineered Products Ltd (CVE:AEP) (OTCMKTS:APEUF), the wood products specialist, has closed an oversubscribed private placing for over C$4.5 million, it told investors on Monday.
The financing was previously announced in December last year, for proposed gross proceeds of up to C$4.25 million, the firm said.
"We are very pleased by the strong interest in AEP that we've received from across North America as demonstrated by our oversubscribed private placement," said the group's chief executive and President Dirk Maritz.
"As a national family of operating companies, AEP is also very proud of the continued support of our insiders and employees and commitment to our vision. We are very excited about the prospects for growth we have for the business going forward."
Atlas issued a total of over 11.4 million units at C$0.40 each. Each unit consists of one Atlas share and one share purchase warrant. Each warrant entitles the holder to buy a further share for C$0.60 for two years from issue. Gross proceeds were C$4,597,253.60.
Directors and officers purchased 475,000 units for gross proceeds of C$190,000. Employees of the company bought a further 307,500 units for gross proceeds of $123,000.
Net proceeds from the offering will be used for potential acquisition targets, general working capital, and capital equipment upgrades.
In December, the group updated on significant contracts being awarded at its three facilities in western Canada. The biggest win for the Nanaimo, British Columbia-based company was four multi-family development projects totaling over $2.3 million of combined engineered wood product and truss packages.
"By investing in new technology, design and engineering capacity we are able to offer additional product lines and turn-key project delivery. AEP is continuing, on a weekly basis, to secure significant projects into the new year," Maritz had said.
He added that the company was "scheduling an unprecedented number of projects to carry into Q1 2020 and beyond".
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