Brokered, non-brokered sale will fund acquisitions and working capital
By Devika Patel
Knoxville, Tenn., Dec. 3 – Zaio Corp. will sell part of its private placement of up to C$7 million of units on a non-brokered basis.
Non-brokered units will be placed with subscribers on the company’s president’s list and other investors.
The initial non-brokered tranche is expected to close concurrently with the first brokered tranche.
Zaio carved the non-brokered units out of the originally announced brokered deal that was announced for up to C$7 million on June 11 and revised on Oct. 27. The offering is for C$5 million with a C$2 million greenshoe.
The company is selling units of one common share and one warrant at C$0.15 per unit in both offers. Prior to Oct. 27, Zaio planned to sell the units at C$0.20 per unit.
Each three-year warrant is exercisable at C$0.20, which is identical to the June 10 closing share price. The warrants were previously exercisable at C$0.28.
The brokered part of the deal is being conducted on a best-efforts basis by a syndicate of agents led by Haywood Securities Ltd., and including Clarus Securities Inc. and Mackie Research Capital Corp.
Settlement is expected “shortly,” the company said in a press release on Dec. 3.
Proceeds will be used for acquisitions, working capital and general corporate purposes.
Based in Calgary, Alta., Zaio maintains a database of property information.
| Issuer: | Zaio Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$5 million
|
| Greenshoe: | C$2 million
|
| Price: | C$0.15
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.20
|
| Agents: | Haywood Securities Ltd. (lead), Clarus Securities Inc. and Mackie Research Capital Corp., non-brokered
|
| Pricing date: | June 11
|
| Amended: | Oct. 27, Dec. 3
|
| Stock symbol: | TSX Venture: ZAO
|
| Stock price: | C$0.20 at close June 10
|
| Market capitalization: | C$15.23 million
|
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