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RMS Rms Systems Inc.

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Delayed by 15 minutes
Share Name Share Symbol Market Type
Rms Systems Inc. TSXV:RMS TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

RMS Systems Inc. Completes $7,361,000 Common Share Offering

12/05/2011 2:09pm

Marketwired Canada


NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES


RMS Systems Inc. ("RMS" or the "Corporation") (TSX VENTURE:RMS) is pleased to
announce that it has completed its previously announced bought- deal private
placement offering (the "Offering") of common shares ("Common Shares") of the
Corporation. In connection with the Offering, RMS issued 10,825,000 Common
Shares at a price of $0.68 per Common Share for aggregate gross proceeds of
$7,361,000. The Common Shares are subject to a four-month hold period which will
expire on September 13, 2011.


In connection with the Offering, Cormark Securities Inc., as underwriter,
received a fee in a total amount equal to 7% of the gross proceeds of the
Offering as well as broker warrants ("Broker Warrants") equal to 7% of the
aggregate number of Common Shares issued pursuant to the Offering. Each Broker
Warrant entitles the holder thereof to acquire one Common Share at a price of
$0.68 for a period of 24 months from today.


The net proceeds from the Offering will be used to fund RMS' capital
expenditures as well as for general working capital purposes.


Cautionary Statements

The information in this news release includes certain information and statements
about management's view of future events, expectations, plans and prospects,
including the use of proceeds from the Offering, that constitute forward looking
statements.


These statements are based upon assumptions that are subject to significant
risks and uncertainties. These risks include, but are not limited to a reduction
in drilling activity in the United States and/or Canada. Because of these risks
and uncertainties and as a result of a variety of factors, the actual results,
expectations, achievements or performance may differ materially from those
anticipated and indicated by these forward looking statements. Although RMS
believes that the expectations reflected in forward- looking statements are
reasonable, it can give no assurances that the expectations of any
forward-looking statements will prove to be correct. The nature of the
agreements that RMS maintains with its industry partners provides that these
agreements are, for the most part, terminable without notice and without
penalty. In addition, these agreements provide that revenue is earned only while
the drilling rig is in operation. As a result, RMS' revenues are impacted
significantly by a reduction in drilling activity by its customers and the RMS
expectations may be impacted significantly in the event a customer changes its
drilling plans or otherwise terminates its relationship with RMS. RMS revenues
are also significantly impacted by weather which on occasion limits drilling
activities. RMS disclaims any intention and assumes no obligation to update or
revise any forward looking statements to reflect actual results, whether as a
result of new information, future events, changes in assumptions, changes in
factors affecting such forward looking statements or otherwise, except as
required pursuant to applicable securities laws.


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