Deal funds pre-development capital expenditures at the Renard Project
By Devika Patel
Knoxville, Tenn., March 8 - Stornoway Diamond Corp. said it plans a C$15 million private placement of units. Scotiabank, the underwriter, has a C$2.25 million greenshoe.
The company will sell 15 million units of one common share and one half-share warrant at C$1.00 per unit on a bought-deal basis. Each whole two-year warrant will be exercisable at C$1.20. The strike price reflects a 22.45% premium to the March 7 closing share price of C$0.98.
Settlement is expected March 28.
Proceeds will be used for pre-development capital expenditures at the Renard Diamond Project and for general corporate purposes.
The Vancouver, B.C., diamond exploration and development company also said it is negotiating a private placement of up to 10 million units, which will be sold on substantially the same terms as the units sold in this placement. The second private placement is expected to settle in the coming weeks with a significant company shareholder and additional investors.
| Issuer: | Stornoway Diamond Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$15 million
|
| Greenshoe: | C$2.25 million
|
| Units: | 15 million
|
| Price: | C$1.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.20
|
| Underwriter: | Scotiabank
|
| Pricing date: | March 8
|
| Settlement date: | March 28
|
| Stock symbol: | Toronto: SWY
|
| Stock price: | C$0.98 at close March 7
|
| Market capitalization: | C$117.46 million
|
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