Vancouver, BC, March 3, 2005--Avcorp Industries Inc. (AVP on the Toronto Stock Exchange) announced it has arranged a private placement of up to 9,500,000 units at a price of $0.25 per unit, to raise gross proceeds of $2,375,000.
Each unit will consist of one common share and one share purchase warrant. One share purchase warrant will entitle the holder thereof to purchase one additional common share of the Company at $0.35 per share for a 12-month period. The proceeds of the financing will be used for general working capital purposes. Up to 50% of the placement will be taken by insiders of the Company who have agreed to accept 50% less warrants at an exercise price of $0.30 for a shorter term of 9 months, in order to comply with the Toronto Stock Exchange (TSX) policy guidelines. Arm's length placees will be offered this amended warrant if requested. The financing is subject to regulatory approval and is anticipated to close by mid March.
The Company is also pleased to announce the addition of Eric Kohn TD to its Board of Directors. Eric brings thirty years of experience with industrial marketing, manufacturing, management and investment banking in Europe and the United States. He has been the Managing Partner at Barons Financial Services SA, an advisory Investment Bank, with offices in Switzerland and London, since its foundation in 1987. Eric sits on the Supervisory Board of dba Luftfahrtgesellschaft mbH, a German Airline based in Munich, and served in the British Reserve Army for some 36 years retiring with a rank of Lt. Colonel.
Avcorp Industries Inc. is a Canadian aerospace industry manufacturer. The Company is a single source supplier for engineering design, manufacture and assembly of subassemblies and complex major structures for business, regional and commercial jet aircraft manufacturers. For more information, please visit www.avcorp.com. Avcorp specializes in flight control structures which it manufactures in its state-of-the-art, custom-built facility in Delta, British Columbia, Canada.
For further information
Sheryl Brecknell, Investor Relations, (604) 587-4921