Company sells 12,307,705 units of one share and one half-share warrant
By Devika Patel
Knoxville, Tenn., April 3 - Mason Graphite Inc. said it negotiated a C$10 million private placement of units with a C$1.5 million greenshoe. The deal priced for C$8 million with a C$1.2 million greenshoe on Thursday and was increased a few hours later.
The company will sell 15,384,625 units of one common share and one half-share warrant at C$0.65 per unit.
Each whole warrant will be exercisable at C$0.85 for two years. The strike price reflects a 23.19% premium to the April 2 closing share price of C$0.69.
The offering is being conducted on a bought-deal basis by a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd.
Ressources Québec plans to buy 4,615,385 units for C$3 million.
Settlement is expected on April 30.
The company also hopes to raise about C$4 million of incremental capital in an equity or equity-linked financing.
Proceeds will be used for development of the Lac Guéret project and general corporate purposes.
The graphite explorer is based in Montreal.
| Issuer: | Mason Graphite Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$10 million
|
| Greenshoe: | C$1.5 million
|
| Units: | 15,384,625
|
| Price: | C$0.65
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.85
|
| Underwriter: | Macquarie Capital Markets Canada Ltd. (lead)
|
| Investor: | Ressources Québec (for C$3 million)
|
| Pricing date: | April 3
|
| Upsized: | April 3
|
| Settlement date: | April 30
|
| Stock symbol: | TSX Venture: LLG
|
| Stock price: | C$0.69 at close April 2
|
| Market capitalization: | C$48.95 million
|
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