Published on 10/25/2013 in the Prospect News PIPE Daily.
Kennady Diamonds completes C$14.01 million private placement of stock
Shares sold in deal to finance exploration, general corporate purposes
By Devika Patel
Knoxville, Tenn., Oct. 25 - Kennady Diamonds Inc. said it completed the brokered portion of its private placement of stock, raising C$5.01 million.
The deal was announced Oct. 7 and priced for C$4 million with a C$1 million greenshoe on Oct. 9, along with a C$9 million non-brokered portion. The company completed the non-brokered portion of the deal on Oct. 22. The non-brokered portion of the deal was increased from C$7 million to C$8 million on Oct. 10 and then again to C$9 million on Oct. 16.
The company sold 1,608,621 common shares at C$4.75 apiece, a 5% discount to the Oct. 8 closing share price of C$5.00. It also sold 1,157,100 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. It sold 910,000 flow-through shares in the brokered portion. Of the flow-through shares, 182,000 comprised the fully exercised greenshoe.
The brokered sale was conducted through a syndicate of underwriters led by Dundee Securities Ltd. and including Salman Partners Inc.
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$14,005,000 (including C$1,001,000 greenshoe)
|
| Warrants: | No
|
| Agents: | Non-brokered (for C$9 million), Dundee Securities Ltd. (lead), Salman Partners Inc. (for C$5,005,000)
|
| 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$5,005,000)
|
| Stock symbol: | TSX Venture: KDI
|
| Stock price: | C$5.00 at close Oct. 8
|
| Market capitalization: | C$121.28 million
|
|
|
| Common stock
|
| Amount: | C$7,640,950
|
| Shares: | 1,608,621
|
| Price: | C$4.75
|
|
|
| Flow-through stock
|
| Amount: | C$6,364,050
|
| Shares: | 1,157,100
|
| Price: | C$5.50
|
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