Proceeds to be used to explore, develop Lac Cinquante uranium deposit
By Devika Patel
Knoxville, Tenn., March 23 - Kivalliq Energy Corp. said it revised the terms of a private placement of stock that priced on March 7 for C$17.81 million. The company will now raise C$5 million on a non-brokered basis and C$6.67 million through a syndicate of underwriters led by Canaccord Genuity Corp. and including Raymond James Ltd., Dundee Securities Ltd., Haywood Securities Inc. and Versant Partners Inc. The deal has a C$1.67 million greenshoe, which will consist of flow-through common shares.
In the non-brokered deal, the company will sell 10 million common shares at C$0.50 apiece. The price per share reflects a 39.02% discount to the March 4 closing share price of C$0.82. The shares were previously priced at C$0.78.
In the brokered offering, Kivalliq will sell 11.12 million flow-through shares at C$0.60 per flow-through share, decreased from the original C$0.90 share price. The price per share is a 26.83% discount to the March 4 closing share price.
"Before Japan, our stock was trading quite high," said Shannon Coutts, corporate communications for Kivalliq. "After everything happened, our stock did go down quite a bit, so it was in our best interest to reprice it.
"With the companies that we dealt with in the financing, it was also in their best interest," Coutts added.
Proceeds will be used to explore and develop Kivalliq's high-grade Lac Cinquante uranium deposit and for general working capital.
Settlement is expected March 30.
Kivalliq is a uranium exploration and development company based in Vancouver, B.C.
| Issuer: | Kivalliq Energy Corp.
|
| Issue: | Flow-through shares, common shares
|
| Amount: | C$11,672,000
|
| Warrants: | No
|
| Pricing date: | March 7
|
| Settlement date: | March 30
|
| Stock symbol: | TSX Venture: KIV
|
| Stock price: | C$0.82 at close March 4
|
| Market capitalization: | C$46.68 million
|
|
|
| Common shares
|
| Amount: | C$5 million
|
| Shares: | 10 million
|
| Price: | C$0.50
|
| Agent: | Non-brokered
|
|
|
| Flow-through shares
|
| Amount: | C$6,672,000
|
| Greenshoe: | C$1,668,000
|
| Shares: | 11.12 million
|
| Price: | C$0.60
|
| Agents: | Canaccord Genuity Corp., Raymond James Ltd., Dundee Securities Ltd., Haywood Securities Inc. and Versant Partners Inc.
|
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