By Sheri Kasprzak
New York, Sept. 15 - Allen-Vanguard Corp. has completed its previously announced private placement for C$12,253,850.
The company sold a total of 7,002,200 subscription receipts at C$1.75 each, including 1,287,914 receipts from a fully exercised over-allotment option.
The subscription receipts are exchangeable for one unit of one share and one half-share warrant. The whole warrants are exercisable at C$2.00 each for 18 months.
The receipts become exchangeable once Allen-Vanguard successfully renegotiates certain covenants of credit facilities totaling C$16 million with the Bank of Scotland.
The offering was placed through a syndicate of underwriters led by Paradigm Capital Inc. and including Loewen, Ondaatje, McCutcheon Ltd. and Versant Partners Inc.
The offering was first announced Aug. 22 as a C$7 million offering comprised of up to 4 million subscription receipts under the same terms. The deal was upsized to C$10 million on Aug. 23, and the size of the greenshoe was increased to 1,142,857 from 800,000 subscription receipts on Sept. 1.
Proceeds will be used for working capital and to strengthen the company's balance sheet.
Based in Ottawa, Allen-Vanguard develops tools and training procedures for minimizing the effects of hazardous materials or devices.
| Issuer: | Allen-Vanguard Corp.
|
| Issue: | Subscription receipts exchangeable for units of one share and one half-share warrant
|
| Amount: | C$12,253,850
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| Receipts: | 7,002,200 (includes greenshoe for 1,287,914 receipts)
|
| Price: | C$1.75
|
| Warrants: | One half-share warrant per unit upon exchange
|
| Warrant expiration: | 18 months
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| Warrant strike price: | C$2.00
|
| Placement agents: | Paradigm Capital Inc. (lead); Loewen, Ondaatje, McCutcheon Ltd. and Versant Partners Inc.
|
| Pricing date: | Aug. 22
|
| Settlement date: | Sept. 15
|
| Stock price: | C$1.46 at close Aug. 22
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| Stock price: | C$1.45 at close Sept. 15
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