IBC Advanced Alloys increases bought deal financing to $3.0 million

IBC Advanced Alloys (CVE:IB) announced Friday it increased its previously announced bought deal financing with Euro Pacific Canada, from $2.5 million to $3.0 million.
Under the terms of the deal, Euro Pacific will now purchase an additional 2.5 million "equity units" for a total of five million equity units at a purchase price of $0.20 each, and a total of 10 million "units" at a purchase price of $0.20 each.
This adds $500,000 to the financing, for a total of $3.0 million, the company said.
Each equity unit consists of one unit, one-half of one subscription right, with each whole right entitling the holder to purchase one unit for $0.20 on a date that is 30 days from closing, and a one-half of a subscription right that, in full, can be redeemed for one unit for $0.20 at a date that is 60 days from closing.
Meanwhile, each unit consists of one common share of IBC, and one-half of one common share purchase warrant. Each whole warrant entitles the owner to acquire one common share of IBC for $0.25 for a period of two years from closing.
IBC has also proportionally increased the over-allotment option that was originally granted to Euro Pacific, which now has an option to purchase an additional 2.25 million "equity units" for another 30 days following the close of the financing, expected on October 24.
This over-allotment option can add gross proceeds of $450,000, IBC said.
The manufacturer of rare metals-based alloys said it will use the proceeds from the financing to strengthen its balance sheet by paying down its notes payable. If any additional funds exist, IBC said it will also use the proceeds to add inventory, and for general working capital purposes.
IBC's alloys serve a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications.
The company, which is headquartered in Vancouver, Canada with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri, also owns prospective beryllium properties in the Western US covering approximately 9,500 hectares.