By Devika Patel
Knoxville, Tenn., Oct. 23 - Finavera Renewables Inc. said it has engaged Dundee Securities Corp. and CIBC World Markets Inc. as agents for a C$23 million private placement of units.
The company will sell up to 57.5 million units at C$0.40 apiece. Each unit consists of one common share and one warrant. Each whole warrant is exercisable at C$0.70 for the two years.
The warrants may expire sooner if Finavera shares trade at C$1.05 or higher for 20 consecutive trading days.
The agents have a greenshoe for an additional 12.5 million units, or C$5 million, and will be paid a 7% cash commission and compensation options to acquire a number of units at C$0.40 each equal to 7% of the units sold.
All of the units and warrants will have a four-month hold period.
Proceeds of the deal, which is slated to close in November, will be used to acquire a wind project in Germany.
Based in Vancouver, B.C., Finavera Renewables develops renewable energy resources and technologies.
| Issuer: | Finavera Renewables Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$23 million (maximum)
|
| Units: | 57.5 million (maximum)
|
| Greenshoe: | 12.5 million units, or C$5 million
|
| Price: | C$0.40
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.70
|
| Agents: | Dundee Securities Corp., CIBC World Markets Inc.
|
| Fees: | 7% in cash, 7% in compensation options
|
| Pricing date: | Oct. 23
|
| Stock symbol: | TSX Venture: FVR
|
| Stock price: | C$0.42 at close Oct. 22
|
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