Oversubscribed deal sells warrants convertible into shares, warrants
By Devika Patel
Knoxville, Tenn., Nov. 18 – Latin American Minerals Inc. said it raised C$1,566,962 in its non-brokered private placement of special warrants. The deal priced for C$1 million on Oct. 6 and raised C$719,500 on Oct. 26. The offering was oversubscribed and increased to C$1.5 million on Oct. 29.
The company sold the special warrants at C$0.01 each. The per-warrant price is identical to the Oct. 5 closing share price. Latin American Minerals sold 71.95 million warrants in the initial tranche.
The special warrants will be exchanged into units of one common share and one warrant, with each warrant exercisable at C$0.015 for three years. The strike price is a 50% premium to the Oct. 5 closing share price.
The special warrants will be automatically exchanged once all needed approvals are received and the company completes a consolidation of its outstanding common shares on a minimum of eight (old) and a maximum of 10 (old) common shares for one (new) common share.
Basil Botha and Michael Hepworth participated in the placement. Foster & Associates Financial Services Inc. was paid a finder’s fee in the form of special warrants and broker warrants.
The gold explorer is based in Toronto.
| Issuer: | Latin American Minerals Inc.
|
| Issue: | Special warrants convertible into units of one common share and one warrant
|
| Amount: | C$1,566,962
|
| Price: | C$0.01
|
| Warrants: | One warrant per unit upon conversion
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.015
|
| Agent: | Non-brokered
|
| Investors: | Basil Botha and Michael Hepworth
|
| Pricing date: | Oct. 6
|
| Upsized: | Oct. 29
|
| Settlement date: | Oct. 26 (for C$719,500), Nov. 18
|
| Stock symbol: | TSX Venture: LAT
|
| Stock price: | C$0.01 at close Oct. 5
|
| Market capitalization: | C$1.75 million
|
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