By Sheri Kasprzak
Atlanta, May 5 - Opti Canada Inc. said it has closed a private placement of units for C$36 million.
The company sold 1.2 million units at C$30.00 each to one of its directors and Gardiner Group Capital Ltd.
The units include one share of series C preferred stock and one half-share warrant. The whole warrants allow for an additional share at C$30.00 each through Nov. 30, 2008.
The preferreds pay annual dividends at 5% and are convertible into common shares on a one-for-one basis.
The preferreds are redeemable at C$30.00 each after the sixth anniversary of closing or at any time the company's stock trades at a volume-weighted average price of more than C$40.50 for 15 consecutive trading days.
The deal was placed through a syndicate of placement agents led by Tristone Capital Inc. and TD Securities Inc. and including Scotia Capital Inc., RBC Capital Markets, FirstEnergy Capital Corp., Raymond James Ltd. and National Bank Financial Inc.
The deal is expected to close in late May.
The proceeds will be used to fund the company's expansion of its Long Lake integrated oil sands project beyond phase I.
Based in Calgary, Alta., Opti develops oil sands projects in Canada.
| Issuer: | Opti Canada Inc.
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| Issue: | Units of one series C preferred share and one half-share warrant
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| Amount: | C$36 million
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| Units: | 1.2 million
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| Price: | C$30.00
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| Dividend: | 5%
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| Conversion price: | C$30.00
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| Conversion ratio: | 1
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Nov. 30, 2008
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| Warrant strike price: | C$30.00
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| Placement agents: | Tristone Capital Inc. (lead); TD Securities Inc. (lead); Scotia Capital Inc.; RBC Capital Markets; FirstEnergy Capital Corp.; Raymond James Ltd.; National Bank Financial Inc.
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| Investor: | Gardiner Group Capital Ltd.
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| Announcement date: | May 5
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| Stock price: | C$24.70 at close May 4
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