Haywood, Cormark are the agents; deal funds capital expenditures
By Devika Patel
Knoxville, Tenn., May 1 - Canamax Energy Ltd. said it raised C$7.81 million in the initial tranche of a private placement of units on Wednesday. The deal priced for between C$5 million and C$8 million on March 28.
The company is selling units of one common share and one half-share warrant at C$1.25 per unit. It sold 6,252,616 units in the first tranche.
Each whole warrant is exercisable at C$2.40 until March 31, 2016. The strike price reflects an 81.82% premium to the March 27 closing share price of C$1.32.
The deal is being conducted on a best efforts basis by a syndicate of agents co-led by Haywood Securities Inc. and Cormark Securities Inc.
Settlement of the second tranche is expected May 8.
Proceeds will be used for the assumption of about C$2.5 million in debt which in connection with the company's planned acquisition of Ki Exploration Inc. and for a portion of Canamax's 2014 capital expenditure program.
The oil and gas company is based in Calgary, Alta.
| Issuer: | Canamax Energy Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$8 million (maximum)
|
| Price: | C$1.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | March 31, 2016
|
| Warrant strike price: | C$2.40
|
| Agent: | Haywood Securities Inc. and Cormark Securities Inc. (co-leads)
|
| Pricing date: | March 28
|
| Settlement date: | April 30 (for C$7,815,770), May 8
|
| Stock symbol: | TSX Venture: CAC
|
| Stock price: | C$1.32 at close March 27
|
| Market capitalization: | C$34.52 million
|
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