Delta Systems Offering Grosses Nearly $2 Million

Bentonville’s Delta Systems Inc., the automation and motion control company, announced on Oct. 31 that it has completed its previously announced rights offering. First Associates Investments Inc. acted as soliciting dealer for the rights offering. About 4.36 million rights were exercised, which together with additional subscriptions, resulted in about 1.97 million units being subscribed for at $1 per unit. The offering generated gross proceeds to Delta of about $1.97 million, with about 1.97 million common shares and 990,000 common share purchase warrants being issued.

Each common share purchase warrant entitles the holder to acquire one common share at an exercise price of $1.35 per share until October 29. The Canadian Venture Exchange has conditionally approved the listing of the common shares issuable on the exercise of the rights and the warrants.

“We are very pleased with the confidence shown by our shareholders through their participation in the rights offering, particularly in light of recent difficult market conditions,” said Gerald Hurlow, Delta’s chairman and CEO.

Delta, which provides cutting edge PC-based automation control solutions for manufacturing and distribution operations, now has approximately 15.74 million common shares outstanding.