By Devika Patel
Knoxville, Tenn., May 23 - Odyssey Resources Ltd. priced a C$4.5 million private placement of subscription receipts.
The company will sell 18 million subscription receipts at C$0.25 apiece.
Dundee Resources Ltd. is expected to buy 10 million receipts for C$2.5 million. Insiders are expected to participate for C$600,000.
The proceeds of the deal will be held in escrow pending the satisfaction of the release conditions. If any of the release conditions have not been met 60 days after the deal settles, the subscription receipts will be canceled and the escrowed funds shall be returned to the investors, minus the costs and expenses of the private placement.
Each subscription receipt from the deal will be exchanged for one common share upon receiving shareholder approval for this private placement.
Settlement is expected June 10.
Proceeds will be used to repay the outstanding principal amount, interest and corresponding financing fee owed in connection with a credit agreement between Odyssey and Dundee Resources for C$530,000. The remainder of the net proceeds will be used for general corporate and working capital purposes.
Toronto-based Odyssey is a mining company focused on properties in the Mediterranean region.
| Issuer: | Odyssey Resources Ltd.
|
| Issue: | Subscription receipts to be exchanged for one common share
|
| Amount: | C$4.5 million
|
| Receipts: | 18 million
|
| Price: | C$0.25
|
| Warrants: | No
|
| Investor: | Dundee Resources Ltd. (for C$2.5 million)
|
| Pricing date: | May 23
|
| Settlement date: | June 10
|
| Stock symbol: | TSX Venture: ODX
|
| Stock price: | C$0.21 at close May 23
|
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