By Devika Patel
Knoxville, Tenn., Feb. 26 - Lakeside Steel Inc. said it raised C$2.23 million in the first tranche of a C$3 million private placement of units. The deal priced with a C$2 million greenshoe on Feb. 10.
The company is selling the units at C$0.27 apiece on a best-efforts basis. It sold 8,244,853 units in this tranche.
Each unit consists of one common share and a half-share warrant. Each whole warrant is exercisable at C$0.40 for two years.
Northern Securities Inc. is the lead agent of a syndicate which includes Octagon Capital Corp. and Byron Securities Ltd.
Proceeds will be used for capital expenditures, such as the installation of a casing threading line, and for general corporate purposes.
Based in Welland, Ont., Lakeside Steel makes seamless and welded standard pipe, oil well casing and tubing, line pipe and cold drawn mechanical tubing.
| Issuer: | Lakeside Steel Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$3 million
|
| Greenshoe: | C$2 million
|
| Price: | C$0.27
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.40
|
| Agent: | Northern Securities Inc. (lead), Octagon Capital Corp. and Byron Securities Ltd.
|
| Pricing date: | Feb. 10
|
| Settlement date: | Feb. 26 (for C$2,226,110)
|
| Stock symbol: | TSX Venture: LS
|
| Stock price: | C$0.32 at close Feb. 9
|
| Market capitalization: | C$16.3 million
|
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