Riviera Tool (AMEX:RTC)
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Riviera Tool Announces Equity Financing
GRAND RAPIDS, Mich., March 22 /PRNewswire-FirstCall/ -- Riviera Tool Co. , a
designer and manufacturer of stamping die systems, today announced that it has
raised $1.5 million through the sale of 394,737 shares of its common stock in a
private placement to several institutional and accredited investors. Riviera
also granted warrants for the investors to purchase additional stock, which
would generate additional capital for the Company.
"Our ability to secure additional working capital through the successful
completion of this private equity placement underscores confidence in our new
approach to stamping die management," said Kenneth K. Rieth, chairman and CEO of
Riviera. "The proceeds from this offering will provide the necessary working
capital to secure future large scale programs and continue the growth of
Riviera."
In connection with this financing, Riviera issued five-year warrants for 335,792
shares of common stock. The exercise price for 167,896 shares is $5.07 per
share and 167,896 shares at $5.53 per share. If the warrant holders exercise
the warrants in full, the Company would receive an additional approximately $1.8
million in cash proceeds.
The purchasers also have an eighteen-monthwarrant to purchase up to an
additional 263,158 shares of common stock. If the warrant holders exercise the
warrants in full, the Company would receive an additional approximately $1.0
million in cash proceeds.
The securities issued in the private placement have not been registered under
the Securities Act of 1933 or any state securities laws and unless so registered
may not be offered or sold in the United States (or to a U.S. person) except
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933 and applicable state
securities laws. In connection with the private placement, the Company has
agreed to file a registration statement to register for resale the common stock
issued on a private placement. This announcement is neither an offer to sell
nor a solicitation of an offer to buy any of the securities issued in a private
placement.
About Riviera Tool
Riviera Tool Co. (http://www.rivieratool.com/ ) designs, develops and
manufactures large-scale, custom metal stamping die systems used in the
high-speed production of sheet metal parts and assemblies for the global
automotive industry. A majority of Riviera's sales are to Mercedes-Benz, BMW,
Nissan, DaimlerChrysler, General Motors Corp., Ford Motor Co. and their Tier One
suppliers.
Forward Looking Information
Information in this news release, which is not historical, includes
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Statements contained in this
press release, including the use of proceeds from the offering; the amount of
additional cash that would be paid upon exercise of the warrants; implementation
of business strategies; and Riviera's objectives, are forward- looking
statements. All of such forward-looking statements involve a number of
important risks and uncertainties that could cause actual results to differ
materially, including but not limited to economic, competitive, governmental and
technological. Riviera undertakes no obligation to update these statements to
reflect ensuing events or circumstances, or subsequent actual results.
DATASOURCE: Riviera Tool Co.
CONTACT: Kenneth K. Rieth, CEO, or Peter C. Canepa, CFO, of Riviera Tool
Company, +1-616-698-2100; or Investor inquiries: Jeff Lambert,
+1-616-233-0500
Web site: http://www.rivieratool.com/