By Laura Lutz
Des Moines, May 25 - Dynamite Resources Ltd. arranged and then upsized a private placement of subscription receipts, which is now expected to raise for C$45 million.
The company now plans to sell 56.25 million subscription receipts at C$0.80 each.
The placement originally priced on Friday morning as a C$20 million offering of 25 million subscription receipts. Its size was increased later in the morning.
The subscription receipts will become exchangeable immediately prior to the company's planned acquisition of Tau Mining Ltd. For each subscription receipt, investors will receive one share and one warrant of Dynamite Finance Inc., a new subsidiary of Dynamite Resources.
At the time of the acquisition, each share or warrant of Dynamite Finance will be exchanged for one share or warrant, respectively, of Dynamite Resources. Each whole Dynamite warrant will be exercisable at C$1.00 for two years
Orion Securities Inc. will lead an underwriting syndicate that also includes GMP Securities LP and Cormark Securities Inc.
Settlement of the placement is expected on June 14.
If the acquisition has not been completed by Aug. 31, the proceeds of the placement will be refunded to subscribers.
Dynamite is a resource exploration company based in Toronto.
| Issuer: | Dynamite Resources Ltd.
|
| Issue: | Subscription receipts ultimately exchangeable for one share and one warrant
|
| Amount: | C$45 million
|
| Subscription receipts: | 56.25 million
|
| Price: | C$0.80
|
| Warrants: | One per subscription receipt upon exchange
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
| Underwriters: | Orion Securities Inc. (lead), GMP Securities LP, Cormark Securities Inc.
|
| Pricing date: | May 25
|
| Upsized: | May 25
|
| Settlement date: | June 14
|
| Stock symbol: | TSX Venture: DNR
|
| Stock price: | C$0.77 at close May 24
|
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