Published on 10/22/2013 in the Prospect News PIPE Daily.
Kennady Diamonds wraps C$9 million non-brokered placement of stock
Company's C$4 million brokered deal led by Dundee to settle Oct. 25
By Toni Weeks
San Luis Obispo, Calif., Oct. 22 - Kennady Diamonds Inc. said it has completed the C$9 million non-brokered portion of its C$13 million private placement of stock. The deal was announced Oct. 7 and was increased on Oct. 10 and again on Oct. 16. The company is also raising C$4 million through a syndicate of underwriters led by Dundee Securities Ltd. and including Salman Partners Inc. The underwriters have a C$1 million greenshoe for the deal, which priced Oct. 9.
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.
In the non-brokered placement, Kennady sold 1,608,621 common shares and 247,100 flow-through shares.
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$13,004,000
|
| Greenshoe: | C$1,001,000
|
| Warrants: | No
|
| Agents: | Non-brokered (for C$9 million), Dundee Securities Ltd. (lead), Salman Partners Inc. (for C$4,004,000)
|
| Announcement date: | Oct. 7
|
| Pricing date: | Oct. 9
|
| Upsized: | Oct. 10, Oct. 16
|
| Settlement dates: | Oct. 22 (for C$9 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$105.36 million
|
|
|
| Common stock
|
| Amount: | C$7,640,950 (in non-brokered deal)
|
| Shares: | 1,608,621 (in non-brokered deal)
|
| Price: | C$4.75
|
|
|
| Flow-through stock
|
| Amount: | C$1,359,050 (in non-brokered deal)
|
| Shares: | 247,100 (in non-brokered deal)
|
| Price: | C$5.50
|
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