By Laura Lutz
Iowa City, Jan. 22 - ZCL Composites Inc. priced a private placement of subscription receipts and then upsized it to C$40 million on Monday.
The company now plans to sell 4 million subscription receipts at C$10 each through a syndicate of underwriters led by Peters & Co. Ltd.
The deal priced on Monday morning as a C$35 million placement of 3.5 million subscription receipts.
Each subscription receipt will be exchangeable for one share of ZCL upon closing of the company's acquisition of Xerxes Corp. That acquisition is expected to close on Feb. 28.
The placement is expected to settle on Feb. 13.
Proceeds will be used to fund a portion of the acquisition. The remainder of the acquisition will be funded with commercial debt financing from CIBC.
Based in Edmonton, Alta., ZCL is a manufacturer of fiberglass underground storage tanks.
| Issuer: | ZCL Composites Inc.
|
| Issue: | Subscription receipts exchangeable for shares
|
| Amount: | C$40 million
|
| Subscription receipts: | 4 million
|
| Price: | C$10.00
|
| Warrants: | No
|
| Underwriters: | Peters & Co. Ltd. (lead)
|
| Pricing date: | Jan. 22
|
| Settlement date: | Feb. 13
|
| Stock symbol: | Toronto: ZCL
|
| Stock price: | C$11.25 at close Jan. 22
|
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