Bourque Industries, a Tucson, AZ-based provider of carbon metal alloys, said on Monday that it that it agreed to a $7.5 million stock purchase agreement with Ironridge Technology Co., an institutional investor that specializes in direct equity investments in the technology sector. The proceeds will be used to fund Borque Industries’ growth, expand executive personnel and resolve outstanding liabilities.
TUCSON, Ariz., June 10, 2013 /PRNewswire/ — Bourque Industries, Inc. (Pink Sheets: BORK), which is developing carbon metal alloys and related product applications using a patented process called Kryron, announced today that it has entered into a $7.5 million stock purchase agreement with Ironridge Technology Co., an institutional investor that specializes in direct equity investments in the technology sector. The Company plans to use the proceeds from this investment to fund operational growth, make additional strategic leadership additions, focus sales and marketing channels, and work on resolving outstanding liabilities.
Under the terms of the agreement, Bourque Industries will issue Ironridge restricted convertible preferred stock as funds are drawn down monthly. These are convertible into restricted common stock at a fixed price of $0.04 per share. Ironridge will be unable to convert the preferred shares into common stock for at least 6 months after each issuance. The preferred shares will earn dividends of 8% per year for 18 years, subject to adjustment.
The first Closing occurred June 5, 2013 in which the Company received $55,000. Each subsequent Closing will take place on the first day of each calendar month thereafter or sooner, at the Company’s option if certain conditions set forth in the Stock Purchase Agreement are met. A more detailed description of the private placement is contained in the Company’s Supplemental Information Filing with OTC Markets on June 7, 2013, seen here: http://www.otcmarkets.com/financialReportViewer?symbol=BORK&id=106097. The securities offered in this private placement have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an applicable exemption from such registration requirements.
“We are extremely impressed with the disruptive potential of the Kryon technology, and are grateful for the opportunity to help facilitate the Company’s vision to better protect American military, security and law enforcement personnel,” commented John C. Kirkland, Managing Director of Ironridge Global Partners. “We are very pleased to make this follow-on commitment to Bourque Industries, following our first $778,000 investment in 2012. We have a great deal of trust and experience with Matt at the helm of multiple public companies. He and his teams have executed well against their stated plans, and always fully performed as promised.”
Matthew Schissler, Chairman commented: “Let this be a clear message to all of our partners, past, current and future that the Bourque Industries ship is turning. We have the necessary respected financial partner and firepower in Ironridge Global to complete on what we set out to do. Having secured this funding is a major milestone for Bourque Industries, one that I personally take with tremendous gratitude towards their willingness to continue to partner with our organization.”
About Bourque Industries
Bourque Industries, Inc. is an advanced materials science company that develops and produces metal alloys and related product applications using our revolutionary metal-alloying process, Kryron. Kryronized alloys have shown global potential for paradigm-shifting applications across a wide range of industries, including ballistic armor, electrical, aviation, automotive, mining, medical devices, agriculture and heavy equipment, consumer electronics, and more. Our fundamental goal is to establish broad market penetration across a wide range of industries. Please visit www.bourqueindustries.com.
About Ironridge Technology Co.
Ironridge Technology Co. is a division of Ironridge Global IV, Ltd. that specializes in direct equity investments in technology companies. Ironridge Global Partners, LLC is an institutional investor, making direct equity investments in small-cap and micro-cap public companies. Ironridge Global has completed over 50 transactions since 2011, ranging from under a quarter million to more than $15 million each, for Nasdaq, NYSE MKT, OTC Bulletin Board and Pink Sheets companies. Ironridge Global Partner’s principals have handled several hundred billion dollars in public company financing transactions over more than two decades. Ironridge Global’s extensive industry experience includes life sciences, energy, natural resources, consumer products, media and technology. To learn more about Ironridge Global Partners, please visit http://www.ironridgeglobal.com.