Shares sold in deal to finance exploration, general corporate purposes
By Devika Patel
Knoxville, Tenn., Oct. 9 - Kennady Diamonds Inc. said it will raise about C$7 million in a non-brokered private placement of stock. The deal was announced Monday. The company will also raise C$4 million through a syndicate of agents led by Dundee Securities Ltd. and including Salman Partners Inc. The agents have a C$1 million greenshoe.
The company will sell common shares at C$4.75 apiece, a 5% discount to the Oct. 8 closing share price of C$5.00. It also will sell flow-through common shares at C$5.50 apiece, a 10% premium to the Oct. 8 closing share price.
Settlement of the non-brokered sale is expected Oct. 17. The brokered offering will settle on Oct. 25.
Proceeds will be used for exploration and general corporate purposes.
The diamond exploration company is based in Toronto.
| Issuer: | Kennady Diamonds Inc.
|
| Issue: | Common shares, flow-through common shares
|
| Amount: | C$11 million (approximate)
|
| Greenshoe: | C$1,001,000
|
| Warrants: | No
|
| Agents: | Non-brokered (for about C$7 million), Dundee Securities Ltd. (lead), Salman Partners Inc. (for C$4,004,000)
|
| Announcement date: | Oct. 7
|
| Pricing date: | Oct. 9
|
| Settlement dates: | Oct. 17 (for about C$7 million), Oct. 25 (for C$4,004,000)
|
| Stock symbol: | TSX Venture: KDI
|
| Stock price: | C$5.00 at close Oct. 8
|
| Market capitalization: | C$98.47 million
|
|
|
| Common stock
|
| Price: | C$4.75
|
|
|
| Flow-through stock
|
| Price: | C$5.50
|
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