By Devika Patel
Knoxville, Tenn., Dec. 11 - Maple Leaf Reforestation Inc. said it only raised C$2.17 million in a non-brokered private placement of units, which settled on Nov. 27.
On Nov. 27, the company said it had raised C$2.29 million in the deal, which priced for C$3 million on Oct. 30. Today, the company said that one of the placement's subscribers was unable to meet its financial obligations before the deadline.
The company said it has decided not to take action against the subscriber for its unmet obligation.
The company sold 1,446,667 units, lowered from its initial announcement of 1,526,667 units, at C$1.50 each. It intended to sell 2 million of the units when the deal priced. Each unit consists of one common share and one half-share warrant. Each whole warrant is exercisable at C$2.00 for two years.
Proceeds will be used to proceed with the company's Xinjiang project, announced on Oct. 16, to expand Maple Leaf's sales and marketing campaign and for general working capital.
Maple Leaf is a Calgary, Alta.-based company focused on growing "value added tree seedlings" in China to help correct their environmental issues.
| Issuer: | Maple Leaf Reforestation Inc.
|
| Issue: | Units of one common share and one half share warrant
|
| Amount: | C$2.17 million
|
| Units: | 1,446,667
|
| Price: | C$1.50
|
| Warrants: | One half warrant per unit
|
| Warrant strike price: | C$2.00
|
| Warrant expiration: | Two years
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 30
|
| Settlement date: | Nov. 27
|
| Downsized: | Dec. 11
|
| Stock symbol: | TSX Venture: MPE
|
| Stock price: | C$1.41 at close Oct. 29
|
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