Offering sells 67 million units and 38,525,000 subscription receipts
By Devika Patel
Knoxville, Tenn., June 14 – Americas Silver Corp. said it completed an upsized C$31.56 million private placement of units and subscription receipts. The deal priced for about C$20 million of units on May 20 and was increased to include C$10.05 million of subscription receipts with a C$1.51 million greenshoe on May 24. The units portion settled on June 9.
GMP Securities LP and Medalist Capital Ltd. were the agents for the units sale, which priced on May 20. The receipts were sold by a syndicate of agents co-led by GMP Securities LP and Medalist Capital Ltd. and including Cormark Securities Inc. and Mackie Research Capital Corp.
Americas Silver sold 38,525,000 subscription receipts at C$0.30 per receipt, a 3.23% discount to C$0.31, the May 19 closing share price. Of the receipts, 5,025,000 were part of the fully exercised greenshoe.
The company also sold about 67 million units of one common share and one quarter-share warrant at C$0.30 per unit, with each whole warrant exercisable at C$0.39 for five years. The strike price is a 25.81% premium to the May 19 closing share price.
Each receipt will be exchanged for an offering unit once shareholder approval is obtained for the offering and other conditions are satisfied on or before Sept. 19.
Proceeds will be used for capital programs at the company’s Galena Complex and San Rafael Property, debt repayment, working capital and general corporate purposes.
Americas Silver is a Toronto-based precious metals mining company that owns the Cosala Operations in Sinaloa, Mexico, and the Galena Mine complex in Idaho.
| Issuer: | Americas Silver Corp.
|
| Issue: | Units of one common share and one quarter-share warrant, subscription receipts
|
| Amount: | C$31,557,500 (approximate)
|
| Price: | C$0.30
|
| Pricing date: | May 20
|
| Upsized: | May 24
|
| Settlement date: | June 9 (for C$20 million)
|
| Stock symbol: | Toronto: USA
|
| Stock price: | C$0.31 at close May 19
|
| Market capitalization: | C$118.82 million
|
|
|
| Units
|
| Amount: | C$20 million (approximate)
|
| Units: | 67 million (approximate)
|
| Warrants: | One quarter-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.39
|
| Agents: | GMP Securities LP and Medalist Capital Ltd.
|
| Selected investor: | Eric Sprott
|
|
|
| Receipts
|
| Amount: | C$11,557,500, including C$1,507,500 greenshoe of 5,025,000 receipts
|
| Receipts: | 38,525,000
|
| Warrants: | No
|
| Agents: | GMP Securities LP and Medalist Capital Ltd. (co-leads) Cormark Securities Inc. and Mackie Research Capital Corp.
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
