- Published on Tuesday, 12 June 2012 22:40
FG_AUTHORS: Marketwire - Mining and Metals
MoneyBar Rewards Inc., operating as Ackroo, Signs Financing Engagement with M Partners Inc. and Paradigm Capital Inc.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2012) - Rare Earth Industries Ltd. (the "Company" or "RND") (TSX VENTURE:RND) is pleased to announce that in connection with the Company's previously announced letter of intent with and proposed acquisition of MoneyBar Rewards Inc., operating as Ackroo Inc. ("Ackroo"), that Ackroo has engaged M Partners Inc. and Paradigm Capital Inc. to act as co-lead agents (the "Agents") to raise up to $7,000,000 on a best efforts agency offering of securities (the "Offering") at terms to be determined in the context of the market. The Offering will include the $2,000,000 financing previously announced by the Company in connection with its proposed acquisition of Ackroo at the same terms as the Offering. The gross proceeds will be held in escrow pending completion of the business combination of RND and Ackroo.
The Agents have been granted an option to sell up to an additional 15% of the number of securities sold in the Offering at terms to be determined in the context of the market.
Trading in the common shares of the Company will remain halted pending further filings with the Exchange.
ABOUT RARE EARTH INDUSTRIES:
Rare Earth Industries Ltd ("RND") is a mineral exploration company focused on rare earth elements and rare metals. Following completion of its 2011 exploration program, the Company made a decision to curtail exploration activities in order to preserve cash and position the Company to assess other strategic opportunities both within and outside of the rare-earths sector. The Company has a strong balance sheet and continues to investigate market opportunities that will allow it to further enhance shareholder value.
Ackroo enables small to medium sized businesses, independent merchants and business networks to increase profitability and build long-term customer relationships through customized loyalty and rewards programs. Their web-based solutions provide the power of a massively scalable software platform in a lightweight online tool that works with existing point-of-sale equipment, making it easy and affordable for businesses of any size to design and launch their own five-star loyalty program. Ackroo's online and in-store loyalty program options provide a blend of stored value capabilities and diverse loyalty incentives, arming businesses with their own 'private currency' and the flexibility to create customized loyalty programs that resonate with their customers. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
Safe Harbor Statement
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.