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Abakan announces financing

World Pipelines,


Abakan Inc., an emerging leader in the advanced coatings and metal formulations markets, has announced that the Company’s board of directors, has determined to initiate a private placement of up to 18.75 million shares of its restricted common stock, at a price of US$ 0.40 a share, for anticipated gross proceeds of up to US$ 7.5 million to support ongoing operations, retire outstanding debt and bolster product development.

The prospective private placement is scheduled to close on 15th September, 2014. Full subscription to the anticipated proceeds would result in the new shareholders having 21.5% of the Company's outstanding shares.

Proceeds will be used to pay off or convert over US$ 4.2 million in debt and to provide the working capital needed to progress the development of the Company’s Cermaclad™ coating process for the oil and gas, and mining sectors to longer sections of pipe than had been previously accomplished, and to complete an expanded product launch for PComP™ coatings.

The PComP™ expansion includes a financing commitment from the State of Ohio to match the Company’s PComP™ expenditures. Our resulting balance sheet and production scale-up will position the Company for renewed growth.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/21082014/abakan-announces-financing/

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