By Sheri Kasprzak
New York, Nov. 16 - Corgi International Ltd. is gearing up to close a $17.6 million private placement of American Depositary Shares as part of its merger with Cards Inc.
The company will issue to institutional and other investors 16 million ADS at $1.10 each and warrants for another 4.8 million shares. The price per ADS is a 6.8% premium to the company's $1.03 closing stock price Wednesday.
Each warrant is exercisable at $1.30.
Proceeds will be used to repay debt. The rest will be used for general corporate purposes.
Under the terms of the acquisition, Corgi will issue 7.2 million of its ADS to acquire all of Cards Inc.'s outstanding common stock.
Hong Kong-based Corgi sells die-cast collectibles.
| Issuer: | Corgi International Ltd.
|
| Issue: | American Depositary Shares
|
| Amount: | $17.6 million
|
| Shares: | 16 million
|
| Price: | $1.10
|
| Warrants: | For 4.8 million shares
|
| Warrant strike price: | $1.30
|
| Announcement date: | Nov. 16
|
| Stock symbol: | Nasdaq: CRGI
|
| Stock price: | $1.03 at close Nov. 16
|
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