Financing to be conducted as part of reversed takeover by Chelsea
By Toni Weeks
San Luis Obispo, Calif., May 26 – Valencia Ventures Inc. announced plans for an up to C$5 million private placement of subscription receipts with a 15% greenshoe.
The company will sell a minimum of 7.5 million and a maximum of 12.5 million subscription receipts of Chelsea Natural Gas Ltd. at C$0.40 per receipt.
The financing is being conducted in connection with the proposed reverse takeover of Valencia.
Each subscription receipt entitles the holder to receive one unit of Chelsea, with each unit consisting of one class D common share and one half-share warrant.
Each whole warrant is exercisable at C$0.70 per share for 18 months.
Upon completion of the reverse takeover, the class D shares of Chelsea will automatically be exchanged for common shares of the resulting issuer on the basis of one new Valencia share for each class D share.
Mackie Research Capital Corp. is the sole agent and bookrunner.
Settlement is expected June 30.
Proceeds will be used for general corporate and working capital purposes
Valencia is a gold and silver exploration company based in Toronto.
| Issuer: | Valencia Ventures Inc.
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| Issue: | Subscription receipts, each exercisable for one unit of one class D common share and one half-share warrant
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| Amount: | C$3 million (minimum) to C$5 million (maximum)
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| Receipts: | 7.5 million (minimum) to 12.5 million (Maximum)
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| Greenshoe: | 15%
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| Price: | C$0.40
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$0.70
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| Bookrunner: | Mackie Research Capital Corp
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| Pricing date: | May 26
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| Settlement date: | June 30
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| Stock symbol: | NEX: VVI.H
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