Deal with 15% greenshoe to fund Milestone Potash Development Project
By Devika Patel
Knoxville, Tenn., Nov. 29 - Western Potash Corp. said it has negotiated a private placement of units with a 15% greenshoe.
The company will sell units of one common share and a half-share warrant at C$1.10 per unit for C$40 million. Half of the units will be sold on a bought-deal basis and the remainder will be sold on a best-efforts basis.
Each warrant is exercisable at C$1.75 for 30 months. The strike price reflects a 44.63% premium to the Nov. 26 closing share price of C$1.21.
Settlement is expected Dec. 14.
The deal will be conducted by co-lead underwriters Mackie Research Capital Corp. and Scotia Capital Markets Inc.
Proceeds will be used to advance the company's Milestone Potash Development Project in Saskatchewan and for general working capital purposes.
Based in Vancouver, B.C., Western Potash is a mineral exploration company with properties in Southwest Manitoba and Southern Saskatchewan.
| Issuer: | Western Potash Corp.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$40,000,200
|
| Greenshoe: | 15%
|
| Price: | C$1.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 30 months
|
| Warrant strike price: | C$1.75
|
| Underwriters: | Mackie Research Capital Corp. and Scotia Capital Markets Inc. (co-leads)
|
| Pricing date: | Nov. 29
|
| Settlement date: | Dec. 14
|
| Stock symbol: | TSX Venture: WPX
|
| Stock price: | C$1.21 at close Nov. 26
|
| Market capitalization: | C$112.61 million
|
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