Half of financing is public offering, half from private investor
By Toni Weeks
San Diego, May 16 - 5N Plus Inc. announced it will raise C$40 million of equity financing, half of which will be raised in a public offering of units and half in a private placement of units.
The company arranged a C$20 million public offering of units with a syndicate of underwriters led by National Bank Financial Inc. There is a C$3 million greenshoe. The 6,452,000 units will be sold at C$3.10 apiece on a bought-deal basis.
5N will concurrently conduct a C$20 million private placement of 6,451,613 units with investor Investissement Quebec at the same price.
Each unit consists of one common share and one half-share warrant. Each whole warrant is exercisable for one common share at C$5.00 for two years. The strike price is a 51.52% premium to the closing share price of C$3.30 on May 15.
Proceeds will be used to reduce 5N's debt under its revolving credit facility and for general corporate purposes.
The metal and chemical producer is based in Montreal.
| Issuer: | 5N Plus Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$40,001,200
|
| Units: | 12,903,613
|
| Price: | C$3.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$5.00
|
| Pricing date: | May 16
|
| Stock symbol: | Toronto: VNP
|
| Stock price: | C$3.30 at close May 15
|
| Market capitalization: | C$234.96 million
|
|
|
| Public offering
|
| Amount: | C$20,001,200
|
| Greenshoe: | C$3,000,180
|
| Units: | 6,452,000
|
| Underwriter: | National Bank Financial Inc. (lead)
|
|
|
| Private placement
|
| Amount: | C$20 million
|
| Units: | 6,451,613
|
| Investor: | Investissement Quebec
|
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