By Sheri Kasprzak
New York, Nov. 15 - Diamond Tree Energy Ltd. negotiated a private placement of flow-through shares for up to C$10.5 million.
The offering includes up to 2 million shares at C$5.25 each. The flow-through shares are being sold at a 22% premium to the company's C$4.30 closing stock price Tuesday.
A syndicate of underwriters led by Canaccord Capital Corp. has a greenshoe for up to 200,000 additional shares.
The syndicate also includes Acumen Capital Finance Partners Ltd., Salman Partners Inc., Haywood Securities Inc. and J.F. Mackie & Co.
The deal is set to close Dec. 7.
Proceeds will be used for exploration and development drilling on the company's existing properties in British Columbia and Alberta.
Calgary, Alta.-based Diamond Tree is an oil and natural gas exploration, development and production company.
| Issuer: | Diamond Tree Energy Ltd.
|
| Issue: | Flow-through shares
|
| Amount: | C$10.5 million
|
| Shares: | 2 million
|
| Greenshoe: | For 200,000 shares
|
| Price: | C$5.25
|
| Warrants: | No
|
| Underwriters: | Canaccord Capital Corp. (lead), Acumen Capital Finance Partners Ltd., Salman Partners Inc., Haywood Securities Inc., J.F. Mackie & Co.
|
| Pricing date: | Nov. 15
|
| Settlement date: | Dec. 7
|
| Stock symbol: | Toronto: DT
|
| Stock price: | C$4.30 at close Nov. 14
|
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