Proceeds are earmarked for exploration, development work in Ethiopia
By Devika Patel
Knoxville, Tenn., Feb. 3 - Allana Potash Corp. said it will conduct a private placement of stock. The deal will raise C$20.01 million.
The company will sell 12.91 million common shares at C$1.55 per share on a bought-deal basis. The price per share represents a 2.65% premium to the Feb. 2 closing share price of C$1.51.
The deal will be conducted by an agent syndicate led by Dundee Securities Ltd. and including Wellington West Capital Markets Inc., Cormark Securities Inc. and Fraser Mackenzie Ltd. The agents have a C$3 million greenshoe.
Settlement is expected March 1.
Proceeds will be used for exploration and development work, including a definitive feasibility study, at the company's Ethiopian potash project, potential land acquisitions and general corporate purposes.
Toronto-based Allana is a potash asset developer.
| Issuer: | Allana Potash Corp.
|
| Issue: | Common shares
|
| Amount: | C$20,010,500
|
| Greenshoe: | C$3,001,575
|
| Shares: | 12.91 million
|
| Price: | C$1.55
|
| Warrants: | No
|
| Agents: | Dundee Securities Ltd. (lead), Wellington West Capital Markets Inc., Cormark Securities Inc. and Fraser Mackenzie Ltd.
|
| Pricing date: | Feb. 3
|
| Settlement date: | March 1
|
| Stock symbol: | TSX Venture: AAA
|
| Stock price: | C$1.83 at close Feb. 3
|
| Market capitalization: | C$216.06 million
|
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