Delta Systems Heads for Canadian Market

Delta Systems Inc., the automation and motion control company, announced on Sept. 26 that it has finalized the terms of a proposed rights offering and has engaged First Associates Investments Inc. to act as soliciting dealer in connection with the transaction.

The rights will be listed on the Canadian Venture Exchange, that country’s equivalent of Nasdaq, where Delta is traded.

The offering will grant to shareholders the right to purchase up to about 3.44 million units, each unit consisting of one common share and one half of one common share purchase warrant. Shareholders who fully subscribe for the number of units available to them will be entitled to subscribe, on a pro-rata basis, for any additional units that are not initially subscribed for.

Shareholders of record on Oct. 5, 2001 will receive one right for each share of Delta owned and such right will expire on Oct. 29. Four rights together with $1 cash will entitle a shareholder to purchase a unit as described above. Each full common share purchase warrant will entitle a holder to acquire one additional common share at an exercise price of $1.35 per share until Oct. 29, 2002. Proceeds from the offering will amount to about $3.09 million Canadian dollars, or about $1.96 million U.S. dollars.

The rights issued under this offering will only be exercisable by U.S. shareholders who are “accredited investors” and shareholders who live in the Canadian provinces of Ontario, Quebec, Alberta, and British Columbia.