By Devika Patel
Knoxville, Tenn., June 18 - Encanto Potash Corp. said it will conduct a C$6 million private placement of shares and units. Primary Capital Inc. is the lead agent of a syndicate that includes Industrial Alliance Securities Inc. The securities will be sold on a guaranteed basis.
The company will sell up to flow-through common shares at C$0.15 each, generating up to C$5 million of proceeds.
Encanto Potash also will sell units at C$0.15 apiece for a total of up to C$1 million.
Each unit will consist of one common share and one half-share warrant, with each whole warrant exercisable at C$0.20 for two years.
Proceeds will be used for exploration and working capital.
The company also clarified that a similar offering of shares and units, which priced May 17 and was to be conducted by Mackie Research Capital Corp. for up to C$6 million, has been canceled. Those shares were priced at C$0.23 each, with the units priced at C$0.20.
Encanto Potash is a natural resource company based in Vancouver, B.C.
| Issuer: | Encanto Potash Corp.
|
| Issue: | Flow-through common shares, units of one common share and one half-share warrant
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| Amount: | C$6 million
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| Price: | C$0.15
|
| Agent: | Primary Capital Inc. (lead), Industrial Alliance Securities Inc.
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| Pricing date: | June 18
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| Stock symbol: | TSX Venture: EPO
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| Stock price: | C$0.145 at close June 17
|
| Market capitalization: | C$24.4 million
|
|
|
| Flow-through shares
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| Amount: | C$5 million
|
| Warrants: | No
|
|
|
| Units
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| Amount: | C$1 million
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
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| Warrant strike price: | C$0.20
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