Published on 2/5/2008 in the Prospect News PIPE Daily.
New Issue: Sanatana Diamonds completes C$10 million placement of units, stock
By Devika Patel
Knoxville, Tenn., Feb. 5 - Sanatana Diamonds Inc. said it raised C$10 million in a private placement of units and shares. The deal was announced Jan. 14 and was originally slated to raise up to C$13 million, then was amended to raise between C$9 million and C$10 million at pricing on Jan. 22, along with a 15% greenshoe.
The company sold 4,200,055 units of one common share and one half-share warrant at C$1.35 apiece for C$5.67 million. Each whole warrant will be exercisable at C$1.65 for 18 months.
Sanatana also sold 2,793,500 flow-through shares at C$1.55 per share for C$4.33 million.
The deal was 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 be paid a 7% cash commission, along with compensation warrants to buy 489,549 common shares. The one-year warrants will be exercisable at C$1.35.
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$9,999,999.25
|
| Agents: | Genuity Capital Markets (lead), J.F. Mackie & Co. Ltd., Haywood Securities Inc., Raymond James Ltd.
|
| Fees: | 7% in cash, warrants for 489,549 shares
|
| Announcement date: | Jan. 14
|
| Pricing date: | Jan. 22
|
| Settlement date: | Feb. 5
|
| Stock symbol: | TSX Venture: STA
|
| Stock price: | C$1.50 at close Jan. 11
|
|
|
| Units
|
| Amount: | C$5,670,074
|
| Units: | 4,200,055
|
| Price: | C$1.35
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.65
|
|
|
| Shares
|
| Amount: | C$4,329,925
|
| Shares: | 2,793,500
|
| Price: | C$1.55
|
| Warrants: | No
|
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