Resource Capital, West Face, company directors invest in brokered deal
By Marisa Wong
Madison, Wis., July 20 - First Nickel Inc. announced that it completed its previously announced private placement of units, raising C$5,099,800. First Nickel priced C$4.5 million of the units on July 8; the deal had a C$675,000 greenshoe.
The placement was conducted via a syndicate of agents led by Paradigm Capital Inc. and including Raymond James Ltd.
The company sold a total of 31,873,750 units at a price of C$0.16 each. Each unit consists of one common share and one-half of a common share purchase warrant. Each warrant is exercisable at C$0.22 for 24 months. The strike price reflects a 25.71% premium to the July 7 closing share price of C$0.175.
According to a news release, Resource Capital Fund IV LP and Resource Capital Fund V LP acquired 11,388,100 units under the offering. In addition, West Face Long Term Opportunities Global Master LP acquired 12,841,900 units. A further 673,750 units were purchased by directors of the company.
Proceeds will be used for general corporate and working capital purposes and to fulfill certain funding and hedging conditions set forth in the credit agreement with Societe Generale, Canada Branch, and Commonwealth Bank of Australia.
First Nickel is a nickel and copper mining and exploration company based in Toronto.
| Issuer: | First Nickel Inc.
|
| Issue: | Units of stock, warrants
|
| Amount: | C$5,099,800
|
| Units: | 31,873,750
|
| Price: | C$0.16
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 24 months
|
| Warrant strike price: | C$0.22
|
| Agents: | Paradigm Capital Inc. (lead), Raymond James Ltd.
|
| Investors: | Resource Capital Fund IV LP and Resource Capital Fund V LP (for 11,388,100 units), West Face Capital Inc. (for 12,841,900 units)
|
| Pricing date: | July 8
|
| Settlement date: | July 19
|
| Stock symbol: | Toronto: FNI
|
| Stock price: | C$0.175 at close July 7
|
| Market capitalization: | C$75.12 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
