BlueScout Technologies seeks USD 5m in warrants placement

Aug 9, 2012 - US-based laser wind sensor developer BlueScout Technologies (CVE:SCT), previously Catch the Wind, on Wednesday unveiled a private placement of special warrants, seeking to raise up to CAD 5 million (USD 5m/EUR 4.1m) in gross proceeds.

The company plans to use the funds to bring its leading product, the OCS-210 optical control system for wind turbines, into bigger volume production, beef up data generation and analysis, and for general working capital.

BlueScout's management will take up about 10% of the offering and Hunter Hall, its biggest shareholder, will also take part to maintain its pro-rata stake in the business.

The special warrants are priced at CAD 0.06 apiece. Each will allow the holder to receive one common share as well as one warrant to purchase one common share at CAD 0.10 for a 36-month period from the completion of the offering.

The agents for the placement -- Stifel Nicolaus Canada Inc and Fraser Mackenzie Ltd -- will be given an option to buy up to an additional 15% of the base offering to cover over-allotments. The deal is subject to certain conditions, including final approval from the TSX Venture Exchange.

(CAD 1.0 = USD 1.007/EUR 0.816)

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