Dacha Capital plans up to C$25 million placement of special warrants

By Jennifer Chiou

New York, March 1 - Dacha Capital Inc. announced that it intends to execute a private placement of special warrants for a minimum of $20 million and a maximum of $25 million.

The company plans to issue at least 44,445,000 special warrants and up to 55,556,000 special warrants at a price of $0.45 each.

In connection with the offering, Dacha has engaged a syndicate of agents co-led by Mackie Research Capital Corp. and Dundee Securities Corp. and including CIBC World Markets Inc and Cormark Securities Inc.

Each special warrant will entitle the holder to one Dacha common share. All unexercised warrants will be deemed to be exercised on the earlier of the date that is four months and a day following the closing date and the fifth business day after a receipt is issued for a final prospectus by the securities regulatory authorities.

Dacha noted that it intends to use the net proceeds from the financing to make opportunistic investments in physical strategic commodities, certain of which are currently unavailable for purchase directly by investors.

The company said it has agreed to pay the agents a commission of 6% of the gross proceeds raised, and it will issue compensation warrants that entitle the agents to acquire a number of common shares that equal 6% of the number of special warrants issued on the offering.

Dacha Capital is a merchant banking company based in Montreal.

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