Company offers units at C$1.00 apiece with warrants through syndicate
By Devika Patel
Knoxville, Tenn., April 15 - Focus Metals Inc. announced it plans a C$15 million private placement of units through syndicate of underwriters led by Cormark Securities Inc. and including Byron Capital Markets Ltd. and Desjardins Securities Inc. There is a C$5 million greenshoe.
The company will sell 15 million units of one common share and one half-share warrant at C$1.00 apiece. Each whole warrant is exercisable at C$1.25 for two years. The strike price represents a 22.55% premium to the April 14 closing share price of C$1.02.
Settlement is expected May 12.
Proceeds will be used for drilling, completion of the NI 43-101 compliant resource estimate and scoping study and procurement of long lead items at the Lac Knife Graphite Project, potential acquisitions, working capital and general corporate purposes.
The emerging mid-tier junior mining exploration company with extensive flake graphite, rare earth elements, precious and base metals properties is based in Ottawa, Ont.
| Issuer: | Focus Metals Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$15 million
|
| Greenshoe: | C$5 million
|
| Units: | 15 million
|
| Price: | C$1.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
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| Warrant strike price: | C$1.25
|
| Underwriters: | Cormark Securities Inc. (lead), Byron Capital Markets Ltd. and Desjardins Securities Inc.
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| Pricing date: | April 15
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| Settlement date: | May 12
|
| Stock symbol: | TSX Venture: FMS
|
| Stock price: | C$1.02 at close April 14
|
| Market capitalization: | C$37.81 million
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