Published on 10/10/2013 in the Prospect News PIPE Daily.
Kennady Diamonds increases private placement of stock to C$12 million
Shares sold in deal to finance exploration, general corporate purposes
By Devika Patel
Knoxville, Tenn., Oct. 10 - Kennady Diamonds Inc. said it increased its non-brokered private placement of stock to C$8 million from C$7 million. 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 for the deal, which priced Wednesday.
The company is selling common shares at C$4.75 apiece, a 5% discount to the Oct. 8 closing share price of C$5.00. It also is selling 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.
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Issue: | Common shares, flow-through common shares
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Amount: | C$12,004,000
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Greenshoe: | C$1,001,000
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Warrants: | No
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Agents: | Non-brokered (for C$8 million), Dundee Securities Ltd. (lead), Salman Partners Inc. (for C$4,004,000)
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Announcement date: | Oct. 7
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Pricing date: | Oct. 9
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Upsized: | Oct. 10
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Settlement dates: | Oct. 17 (for C$8 million), Oct. 25 (for C$4,004,000)
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Stock symbol: | TSX Venture: KDI
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Stock price: | C$5.00 at close Oct. 8
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Market capitalization: | C$105.36 million
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Common stock
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Price: | C$4.75
|
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Flow-through stock
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Price: | C$5.50
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