Bought-deal offering to provide financing for Cap-Chat pilot plant
By Susanna Moon
Chicago, June 21 - Exploration Orbite V.S.P.A. Inc. said it entered into an agreement with Mackie Research Capital Corp. as lead underwriter and bookrunner for a private placement of special warrants for proceeds of C$50 million. There is a 15% greenshoe.
The company will sell 15,625,000 special warrants at C$3.20 each. Each special warrant will be exchangeable into one unit consisting of a share and one half-share warrant.
Each warrant is exercisable at C$4.50 for up to 12 months from closing. The strike price is a 32.74% premium to the company's closing price of C$3.39 on June 20.
Orbite may force conversion if the volume-weighted average price of the company's shares exceeds C$7.50 for any consecutive 10-day trading period after the earlier of the date of the liquidity event or the end of the four-month hold period on the securities to be issued under the offering, according to a company press release.
Settlement is expected to occur during the week of July 4.
"This financing is expected to permit Orbite to convert its Cap-Chat pilot plant into a commercial facility geared at producing ultrapure alumina and to pursue other development efforts within its business plan," Richard Boudreault, president of Orbite, said in the release.
Exploration Orbite is a Montreal-based mineral exploration company.
| Issuer: | Exploration Orbite V.S.P.A. Inc.
|
| Issue: | Special warrants exchangeable into units of one share and one half-share warrant
|
| Amount: | C$50 million
|
| Greenshoe: | 15%
|
| Units: | 15,625,000
|
| Price: | C$3.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$4.50
|
| Call: | If the volume-weighted average price of the company's shares exceeds C$7.50 for any consecutive 10-day trading period
|
| Bookrunner: | Mackie Research Capital Corp.
|
| Pricing date: | June 21
|
| Stock symbol: | TSX Venture: ORT.A
|
| Stock price: | C$3.39 at close June 20
|
| Market capitalization: | C$492.79 million
|
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