Agent syndicate helps finance exploration and development of projects
By Devika Patel
Knoxville, Tenn., Feb. 9 - U3O8 Corp. said it settled an C$11.52 million private placement of units. The deal priced for C$10.02 million with a 15% greenshoe on Jan. 19.
The company sold 19,205,000 units of one common share and one half-share warrant at C$0.60 per unit on a bought-deal basis. Of the units, 2,505,000 were part of the fully exercised greenshoe.
Each whole two-year warrant will be exercisable at C$0.80. The strike price reflects a 15.94% premium to the Jan. 18 closing share price of C$0.69.
The offering was conducted by a syndicate of underwriters led by Dundee Securities Ltd. and including Clarus Securities Inc., PowerOne Capital Markets Ltd. and National Bank Financial Inc.
Proceeds will be used for exploration and development of projects in Colombia, Argentina and Guyana and for general corporate purposes.
The uranium explorer is based in Toronto.
| Issuer: | U3O8 Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$11,523,000, including C$1,503,000 greenshoe
|
| Units: | 19,205,000
|
| Price: | C$0.60
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.80
|
| Agent: | Dundee Securities Ltd. (lead), Clarus Securities Inc., PowerOne Capital Markets Ltd. and National Bank Financial Inc.
|
| Pricing date: | Jan. 19
|
| Settlement date: | Feb. 9
|
| Stock symbol: | TSX Venture: UWE
|
| Stock price: | C$0.69 at close Jan. 18
|
| Market capitalization: | C$58.53 million
|
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