Underwriters exercise C$5 million over-allotment option in full
By Angela McDaniels
Tacoma, Wash., May 12 - Focus Metals Inc. said it completed a C$20 million bought-deal private placement of units. The C$15 million placement priced on April 15, and the underwriters exercised their C$5 million over-allotment option in full.
The syndicate of underwriters was led by Cormark Securities Inc. and included Byron Capital Markets Ltd. and Desjardins Securities Inc.
The company sold 20 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 is a 22.55% premium over the April 14 closing share price of C$1.02.
Proceeds will be used for drilling, the completion of the NI 43-101 compliant resource estimate and scoping study, the 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 is based in Ottawa.
| Issuer: | Focus Metals Inc.
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$20 million, including C$5 million greenshoe
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| Units: | 20 million
|
| Price: | C$1.00
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$1.25
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| 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
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| Stock symbol: | TSX Venture: FMS
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| Stock price: | C$0.89 at close May 11
|
| Market capitalization: | C$55.54 million
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