Receipts convert to units of one common share, one half-share warrant
By Devika Patel
Knoxville, Tenn., March 23 - Drift Lake Resources Inc. said it settled the third and final tranche of a private placement of subscription receipts for C$1.85 million. The deal was announced Nov. 9 and the first tranche settled for C$16.22 million on Jan. 26. The second tranche raised C$3.02 million and the third tranche was settled for C$1.85 million for a total of C$21.08 million.
The company sold the receipts at C$0.50 apiece, a 25% premium to the Jan. 25 closing share price of C$0.40; it sold 32.43 million receipts in the first tranche, 6.03 million receipts in the second and 3.7 million receipts in the third.
Each receipt converts to 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 a premium to the Jan. 25 closing price.
The deal was mostly conducted by co-lead agents Jones Gable & Co. Ltd. and PowerOne Capital Markets Ltd., with a syndicate that included Clarus Securities Inc., Salman Partners Inc. and Primary Capital Inc. However, C$500,000 of the proceeds was raised on a non-brokered basis.
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 was conducted in connection with the merger.
| Issuer: | Drift Lake Resources Inc.
|
| Issue: | Subscription receipts
|
| Amount: | C$21.08 million
|
| Receipts: | 42.16 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.75
|
| Agents: | Jones Gable & Co. Ltd. and PowerOne Capital Markets Ltd. (co-leads), Clarus Securities Inc., Salman Partners Inc. and Primary Capital Inc. (for C$20.58 million), non-brokered (for C$500,000)
|
| Announcement date: | Nov. 9
|
| Settlement date: | Jan. 26 (for C$16,215,000), Feb. 3 (for C$3,015,000), March 23 (for C$1.85 million)
|
| Stock symbol: | TSX Venture: DLA
|
| Stock price: | C$0.40 at close Jan. 26
|
| Market capitalization: | C$19.64 million
|
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