Company sells equity on a non-brokered basis to fund working capital
By Devika Patel
Knoxville, Tenn., June 3 - Megastar Development Corp. said it has arranged a C$1.01 million non-brokered private placement of units.
The company will sell 7 million A units of one common share and one warrant at C$0.075 each. The A warrants are each exercisable at C$0.10 for two years.
The company also will sell 4 million B units of one common share and one half-share warrant at C$0.12 each. The whole B warrants are each exercisable at C$0.18 for two years.
The warrant strike prices are 47.37% and 5.26% discounts to the June 2 closing share price of C$0.19.
Settlement is expected June 15.
Proceeds will be used for general working capital, including the company's ongoing evaluation of possible projects.
Megastar is a resource company based in Vancouver, B.C.
| Issuer: | Megastar Development Corp.
|
| Issue: | A units of one common share and one warrant, B units of one common share and one half-share warrant
|
| Amount: | C$1,005,000
|
| Warrant expiration: | Two years
|
| Agent: | Non-brokered
|
| Pricing date: | June 3
|
| Settlement date: | June 15
|
| Stock symbol: | TSX Venture: MDV
|
| Stock price: | C$0.17 at close June 3
|
| Market capitalization: | C$1.73 million
|
|
|
| A units
|
| Amount: | C$525,000
|
| Units: | 7 million
|
| Price: | C$0.075
|
| Warrants: | One warrant per unit
|
| Warrant strike price: | C$0.10
|
|
|
| B units
|
| Amount: | C$480,000
|
| Units: | 4 million
|
| Price: | C$0.12
|
| Warrants: | One half-share warrant per unit
|
| Warrant strike price: | C$0.18
|
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