Laurentian Bank buys equity on a bought-deal basis at C$0.70 per unit
By Devika Patel
Knoxville, Tenn., Feb. 16 - American Manganese Inc. said it negotiated a private placement of units with Laurentian Bank Securities Inc. as underwriter. It will raise C$5.04 million with a C$5.04 million greenshoe.
The company will sell 7.2 million units at C$0.70 apiece to Laurentian Bank on a bought-deal basis. Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at C$0.90 for 18 months. The strike price reflects a 15.39% premium to the Feb. 15 closing share price of C$0.78.
Settlement is expected March 8.
Proceeds will be used to advance a pre-feasibility study and pilot plant testing, increase the company's drilling program, further environmental studies and for general working capital.
The Vancouver, B.C.-based company is a producer of electrolytic manganese.
Issuer: | American Manganese Inc.
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Issue: | Units of one common share and one half-share warrant
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Amount: | C$5.04 million
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Greenshoe: | C$5.04 million
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Units: | 7.2 million
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Price: | C$0.70
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Warrants: | One half-share warrant per unit
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Warrant expiration: | 18 months
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Warrant strike price: | C$0.90
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Underwriter: | Laurentian Bank Securities Inc.
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Pricing date: | Feb. 16
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Settlement date: | March 8
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Stock symbol: | TSX Venture: AMY
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Stock price: | C$0.78 at close Feb. 15
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Market capitalization: | C$46.05 million
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