By Devika Patel
Knoxville, Tenn., Jan. 14 - Sanatana Diamonds Inc. announced it plans a C$13 million private placement of units and shares.
The company will sell units of one common share and one half-share warrant. Each whole warrant will be exercisable for 18 months. The exact price of the units and the warrant strike price will be determined at a later date.
Sanatana also will sell flow-through shares at a price to be determined according to market conditions.
The deal will be conducted by a syndicate of agents led by Genuity Capital Markets and including J.F. Mackie & Co. Ltd., Haywood Securities Inc. and Raymond James Ltd. The agents will have a greenshoe for an additional 15% of the units and shares sold. They will be paid a 7% cash commission, along with compensation warrants to buy a number of common shares equal to 7% of the securities sold. The one-year warrants will have an exercise price equal to the higher of the market price and issue price of the units.
The deal is expected to close on Feb. 5.
Proceeds will be used for exploration, working capital and general corporate purposes.
Sanatana is a diamond exploration company based in Vancouver, B.C.
| Issuer: | Sanatana Diamonds Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through shares
|
| Amount: | C$13 million
|
| Greenshoe: | 15%
|
| Agents: | Genuity Capital Markets (lead), J.F. Mackie & Co. Ltd., Haywood Securities Inc., Raymond James Ltd.
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| Fees: | 7% in cash, 7% in warrants
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| Pricing date: | Jan. 14
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| Settlement date: | Feb. 5
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| Stock symbol: | TSX Venture: STA
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| Stock price: | C$1.50 at close Jan. 11
|
|
|
| Units
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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|
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| Shares
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| Warrants: | No
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