Noble Iron announced it will pursue a non-brokered private placement offering of up to CDN $6 million for up to 6 million common shares of the company at a price of $1 per share. Noble Iron, which operates in equipment rental and distribution as well as software for the rental industry, plans to use the proceeds for growth activities at its Southern California and Houston operations, technology development initiatives and general working capital purposes.
The placement is expected to close around Sept. 30. Insiders of the company are expected to subscribe for at least 25 percent of the private placement.
The commons shares issued in connection with the placement will be subject to a hold period of four months and one day from the date of distribution under applicable securities laws, and is subject to required regulatory approvals.
Noble Iron, based in Houston, is the exclusive distributor of LiuGong construction Machinery in Southeast Texas and operates equipment rental and distribution activities in California and Texas. It also operates Texada Software, based in Guelph, Ontario, Canada.