By Sheri Kasprzak
New York, Feb. 6 - Ontario Hose Specialties Inc. closed its previously announced private placement for C$39,947,050.
The company sold 61.457 million subscription receipts at C$0.65 each.
The receipts are exchangeable on a one-for-one basis for units of one share and one warrant once the company completes its acquisition of Vermilion REP SAS, a subsidiary of Vermilion Exploration SAS.
The warrants associated with the offering are exercisable at C$0.90 each for 18 months.
The deal priced on Jan. 15 as a C$35 million offering but was upsized to C$40 million on Jan. 18.
Proceeds will be used for the $6 million purchase price of the acquisition, to finance the company's obligations under the farm-in agreement and for working capital.
Based in Vancouver, B.C., Ontario Hose sells hose, fittings and accessories to industrial customers.
| Issuer: | Ontario Hose Specialties Inc.
|
| Issue: | Subscription receipts exchangeable for units of one share and one warrant
|
| Amount: | C$39,947,050
|
| Receipts: | 61.457 million
|
| Price: | C$0.65
|
| Warrants: | One per unit upon exchange
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.90
|
| Pricing date: | Jan. 15
|
| Upsized: | Jan. 18
|
| Settlement date: | Feb. 6
|
| Stock symbol: | TSX Venture: OHS
|
| Stock price: | C$0.72 at close on Jan. 15
|
| Stock price: | C$0.69 at close on Jan. 17
|
| Stock price: | C$0.73 at close Feb. 6
|
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