Oversubscribed deal funds exploration of Lucky Strike mineral property
By Devika Patel
Knoxville, Tenn., March 8 - AccelRate Power Systems Inc. said its non-brokered private placement has been oversubscribed. The deal priced as a C$6 million stock sale on Jan. 25 and has since been changed to a placement of C$6 million subscription receipts exchangeable for common shares.
The company will sell 20 million subscription receipts at C$0.30 apiece, a 25% discount to the Jan. 24 closing share price of C$0.40. On completion of the company's proposed change of business, each subscription receipt will be exchanged for one common share.
Proceeds will be used for the optioning and exploration of the Lucky Strike mineral property in the Yukon, additional property acquisitions and general working capital.
Upon changing its business, Vancouver, B.C.-based AccelRate intends to become a pure gold explorer focused on the Yukon and will change its name to Goldstrike Resources Ltd.
| Issuer: | AccelRate Power Systems Inc.
|
| Issue: | Subscription receipts exchangeable for common shares
|
| Amount: | C$6 million
|
| Receipts: | 20 million
|
| Price: | C$0.30
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | Jan. 25
|
| Amended: | March 8
|
| Stock symbol: | TSX Venture: AXP
|
| Stock price: | C$0.40 at close Jan. 25
|
| Market capitalization: | C$8.34 million
|
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