Tonbridge Power Inc (2) (C-TBZ) - News Release

Tonbridge arranges $13-million offering

2009-12-11 16:22 ET - News Release
Shares issued 28,482,111
TBZ Close 2009-12-11 C$ 2.10

Mr. Johan van't Hof reports

TONBRIDGE POWER INC. ANNOUNCES FILING OF FINAL SHORT FORM PROSPECTUS

Tonbridge Power Inc. has filed a final short-form prospectus in connection with a marketed public offering of units of the company in the provinces of Alberta, British Columbia, Ontario and Quebec. The company is offering 6.28 million units at a price of $2.15 per unit for gross proceeds of $13,502,000. Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at any time within 18 months after the completion of the offering at a price of $2.60 per common share.

The offering is being conducted by a syndicate of agents led by Clarus Securities Inc. and including Macquarie Capital Markets Canada Ltd. and Dundee Securities Corp. The agents have been granted an overallotment option, exercisable at any time up to 30 days after closing of the offering, to increase the number of units issued under the offering by up to 15 per cent to cover overallotments, if any, and for market stabilization purposes.

Closing of the offering is expected to occur on Dec. 17, 2009, and is subject to customary conditions and regulatory approvals, including the approval of the TSX Venture Exchange.

Tonbridge intends to use the net proceeds of the offering for working capital and general corporate expenses, including preliminary evaluation and advancing of a new transmission line in southern Montana (known as the Green Line project) and other potential power transmission projects in accordance with its stated business objective of establishing, developing, owning and operating power transmission projects and providing transmission line service to electricity shippers in North America.

We seek Safe Harbor.