Investor Liberty Metals wishes to maintain 15.97% stake in company
By Devika Patel
Knoxville, Tenn., April 1 - Allana Potash Corp. said it negotiated a C$1.9 million non-brokered private placement of units with its largest shareholder, Liberty Metals & Mining Holdings, LLC. The investor intends to maintain its 15.97% ownership through this offering.
The company will sell 1,187,820 units at C$1.60 per unit to Liberty Metals. Each unit consists of one common share and one half-share warrant; the whole warrants are exercisable at C$2.08 for three years. The strike price reflects a 13.04% premium to the March 31 closing share price of C$1.84.
Settlement is expected May 1.
Proceeds will finance a drilling program and feasibility study for the company's main asset, the Ethiopian potash property in the Danakhil evaporite basin, and also be used for general corporate purposes.
Toronto-based Allana is a potash asset developer.
| Issuer: | Allana Potash Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$1,900,512
|
| Units: | 1,187,820
|
| Price: | C$1.60
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$2.08
|
| Agent: | Non-brokered
|
| Investor: | Liberty Metals & Mining Holdings, LLC
|
| Pricing date: | April 1
|
| Settlement date: | May 1
|
| Stock symbol: | TSX Venture: AAA
|
| Stock price: | C$1.84 at close March 31
|
| Market capitalization: | C$218.42 million
|
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