Receipts convert to units of one common share, one half-share warrant
By Devika Patel
Knoxville, Tenn., Jan. 26 - Drift Lake Resources Inc. said it concluded the first tranche of a private placement of subscription receipts. The deal was announced Nov. 9 and the first tranche settled for C$16.22 million. The company expects a second tranche to settle Jan. 31.
The company is selling the receipts at C$0.50 apiece, a 25% premium to the Jan. 25 closing share price of C$0.40, and sold 32.43 million receipts in this tranche.
Each receipt will convert into units of one common share and one half-share warrant, with each whole warrant exercisable at C$0.75 for 18 months. The strike price is an 87.5% premium to the Jan. 25 closing price.
The Toronto gold explorer also said that it has negotiated a definitive agreement with Northbrook Energy, LLC on Jan. 17 to combine the two companies. The placement is being conducted in connection with the merger.
| Issuer: | Drift Lake Resources Inc.
|
| Issue: | Subscription receipts
|
| Amount: | C$16,215,000
|
| Receipts: | 32.43 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.75
|
| Announcement date: | Nov. 9
|
| Settlement date: | Jan. 26, Jan. 31
|
| Stock symbol: | TSX Venture: DLA
|
| Stock price: | C$0.40 at close Jan. 26
|
| Market capitalization: | C$11.73 million
|
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