TORONTO, ONTARIO--(Marketwire - May 1, 2012) - Semcan Inc. (TSX VENTURE:STT) ("Semcan" or the "Company") today announced that it has completed a previously-announced $1,700,000 financing with Business Development Bank of Canada.
The Company used the proceeds of the financing for working capital purposes, and to retire, on April 26, 2012, an existing obligation of $900,000 bearing interest at 18% which was due no later than May 26, 2012.
The new loan matures on February 8, 2014, with interest payable monthly at 12% per annum. Principal repayments of $20,000 per month are required, with the balance due at maturity. In connection with the loan, the Company issued 1,045,000 common share purchase warrants to the lender exercisable at $0.14 per share until February 8, 2014.
David Deacon, Semcan's CEO, said, "The closing of this financing and repayment of the $900,000 loan due May 26, 2012 is another important step in the refinancing plan which we embarked on in early 2011. The Company's working capital position is very solid, and our project execution team continues to operate at a high level in delivering high-quality systems to our customers. Sincere thanks to our dedicated employees, who continue to work very hard to meet our customers' expectations."
About Semcan Inc.
Semcan is a North American supplier of industrial processes and environmental solutions with specific emphasis on water remediation and emission control systems.
The Company is of the view that environmental considerations and preventative technologies are becoming a prerequisite of most modern industrial expansion, particularly in the mining, oil & gas and power sectors.
The Company's principal focus is the conceptual design, engineering, project management, and assembly and installation of complete bulk material handling systems used to clean up water and control air emissions- from the storage silos, to the conveying systems, to the computerized electronic controls. The systems are utilized internationally in a broad range of industries.
Caution Regarding Forward-Looking Information and Non-IFRS Measures
This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and expectations and are based on information currently available to management of Semcan. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including risks outlined under "Risk Factors" in our Annual Information Form, which is posted at www.sedar.com. In evaluating these statements, investors should specifically consider various factors, including such risks as Investment Risk; Business Valuations; Condition of Capital Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate Risk; Competition; and Reliance on Key Suppliers. One or more of these "Risk Factors" could cause actual events or results to differ materially from any forward-looking statement. These factors should not be considered exhaustive. Although the forward-looking statements contained in this press release are based on what management of Semcan considers to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and none of Semcan nor its directors assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.