Abakan Inc., an emerging leader in the advanced coatings and metal formulations markets, announced that the Company’s board of directors, has determined to initiate a private placement of up to eighteen million seven hundred and fifty thousand (18,750,000) shares of its restricted common stock, at a price of $0.40 a share, for anticipated gross proceeds of up to seven million five hundred thousand dollars ($7,500,000), to support ongoing operations, retire outstanding debt and bolster product development. The prospective private placement is scheduled to close on September 15, 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 $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.