Offer conducted via lead agent Raymond James with C$903,000 greenshoe
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Feb. 16 - Omni-Lite Industries Canada Inc. said it has completed a private placement of units.
The deal priced for C$5.59 million on Jan. 26 and was increased to C$6.02 million on Jan. 27. The company raised C$6.92 million on a bought-deal basis via a syndicate of underwriters led by Raymond James Ltd. There is a C$903,000 greenshoe, which originally was only for C$838,500.
The company sold 3.22 million units of one common share and one half-share warrant at C$2.15 per unit. Each whole two-year warrant is exercisable at C$2.70. The strike price reflects a 23.85% premium to the Jan. 25 closing share price of C$2.18.
According to Tim Wang, chief financial officer, the deal was "smooth" and demand was significantly higher than what was sold.
"We were able to raise a lot more, but we don't need that much money to fund our near-term projects," he told Prospect News.
As such, many investors' allotments were cut back, but Wang said he believed everyone that wanted to participate got in.
The deal also brought in a fair amount of new investors, he said.
Wang said the board of directors would soon meet to discuss uses of the proceeds, noting that one option was to repay $2.5 million in debt.
"It's not due, actually, but we might as well not pay the interest," he said.
Other uses include potential equipment purchases and a building acquisition.
Wang also said that as the Canadian dollar was currently valued higher than the U.S. dollar, "we get a little benefit that way."
Omni-Lite, based in Cerritos, Calif., is a technology company that develops and manufactures components used by several U.S.-based retail manufacturers.
| Issuer: | Omni-Lite Industries Canada Inc.
|
| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$6,923,000 (including C$903,000 greenshoe)
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| Units: | 3.22 million
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| Price: | C$2.15
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$2.70
|
| Agent: | Raymond James Ltd. (lead)
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| Pricing date: | Jan. 26
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| Upsized: | Jan. 27
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| Settlement date: | Feb. 16
|
| Stock symbol: | TSX Venture: OML
|
| Stock price: | C$2.31 at close Jan. 26
|
| Market capitalization: | C$24.15 million
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