Greenshoe fully exercised in brokered offering with Canaccord Genuity
By Devika Patel
Knoxville, Tenn., Aug. 31 - Levon Resources Ltd. said it concluded a combined C$11.1 million private placement of units in brokered and non-brokered portions.
The deal included a C$10 million brokered private placement of units. Canaccord Genuity Corp. was the agent for the deal, which priced for C$7.5 million with a C$2.5 million greenshoe on Aug. 17.
The issuance also included C$1.1 million in a non-brokered offering on identical terms, which priced for C$1 million on Aug. 17.
In the brokered deal, the company sold 13,334,000 units at C$0.75 apiece. Of the units, 3,334,000 were part of the fully exercised greenshoe. Levon sold 1,471,353 units in the non-brokered deal.
Each unit consists of one common share and one half-share warrant.
Each whole warrant will be exercisable at C$1.20 for 18 months. The strike price reflects a 27.66% premium to the Aug. 16 closing share price of C$0.94.
Fronteer Gold Inc. purchased 6,666,700 units in the brokered deal for C$5 million.
Proceeds will be used for exploration and general working capital.
Based in Vancouver, B.C., Levon Resources is a natural resource explorer.
| Issuer: | Levon Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$11,104,015 (including C$2,500,500 greenshoe)
|
| Units: | 14,805,353
|
| Price: | C$0.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.20
|
| Agent: | Canaccord Genuity Corp. (for up to C$10,000,500), non-brokered (for C$1,103,515)
|
| Investor: | Fronteer Gold Inc. (for C$5,000,025)
|
| Pricing date: | Aug. 17
|
| Settlement date: | Aug. 31
|
| Stock symbol: | TSX Venture: LVN
|
| Stock price: | C$0.94 at close Aug. 16
|
| Market capitalization: | C$62.45 million
|
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