IBC Advanced Alloys Announces Closing of its C$2M Non-Brokered Private Placement; Announces Additional C$284,000 Offering

NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR FOR DISSEMINATION IN THE UNITED STATES

FRANKLIN, Ind., Dec. 13, 2019 (GLOBE NEWSWIRE) -- IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) is pleased to announce that it has closed the Company’s previously announced non-brokered private placement (the “Offering”).

Pursuant to the Offering, the Company issued 17,094,010 common shares of the Company (the "Common Shares") at a price of C$0.117 per Common Share for gross proceeds to the Company of approximately C$2,000,000. The Common Shares issued pursuant to the Offering are subject to a four month hold period in accordance with applicable Canadian securities laws.

The Company is also pleased to announce that due to strong demand for the Offering, the Company intends to offer, on a non-brokered private placement basis, up to an additional 2,105,000 Common Shares at a price of C$0.135 per Common Shares for additional gross proceeds to the Company of approximately C$284,000 (the “Additional Offering”).

It is expected that the Additional Offering will close on or before December 20, 2019 and is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the approval of the TSXV Venture Exchange (“TSXV”) and other customary conditions. The Common Shares sold pursuant to the Additional Offering will be subject to a four month hold period, which will expire four months and one day from the date of closing.

Proceeds of the Offering and the Additional Offering will be used for working capital and general corporate purposes.

Mark Smith and Simon Anderson, directors of the Company, participated in the Offering by purchasing an aggregate of 3,380,230 Common Shares. Accordingly, the Offering constitutes a related-party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”), and subject to participation by certain directors and officers, the Additional Offering may also constitute a related-party transaction. The transactions are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of any securities issued to nor the consideration paid by such persons would exceed 25% of the Company’s market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Offering as the details of the Offering and the participation therein by related parties of the Company were not settled prior to the closing of the Offering and the Company wished to close on an expedited basis for sound business reasons.