Avcorp Industries has entered into an amended transaction with Panta Holdings B.V. (“Panta”). Avcorp and Panta have amended their Investment Agreement dated June 15, 2009, the original terms of which did not receive the approval of the Toronto Stock Exchange (“TSX”). Under the amended agreement, Panta has agreed to purchase 16,157,465 common shares of Avcorp at a price of C$0.15 per share for a total gross proceeds of C$2,423,620 (the “Panta Private Placement”). The proceeds from the Panta Private Placement will be used as working capital and to repay a bridge loan of approximately C$1.5 million advanced by Panta on June 15, 2009 and a shareholder loan owing to Michael Scholz, a former director of the Company, in the principal amount of C$400,000. The shares issuable to Panta under the Panta Private Placement represent 50% of the current outstanding common shares of Avcorp. On closing, Panta will own approximately 33.3% of the outstanding common shares of Avcorp. The TSX has approved the Panta Private Placement, subject to customary conditions.
Panta is a private investment vehicle, the principal of which is Mr. Jaap Rosen Jacobson. Mr. Jacobson, through Panta, was formerly the principal of VLM Airlines, a regional airline based in Europe, and has extensive knowledge of the manufacturing business in the aircraft industry.
