Greenshoe partially exercised; deal finances general working capital
By Devika Patel
Knoxville, Tenn., Dec. 17 - Lignol Energy Corp. said it settled a C$4.52 million private placement of units. Canaccord Genuity Corp. was the agent for the deal, which priced for C$4 million with a C$1 million greenshoe on Nov. 16. Global Securities Corp. and Haywood Securities Inc. also assisted.
The company sold units of one common share and one half-share warrant at C$0.15 per unit on a commercially reasonable-efforts basis.
Each whole warrant is exercisable at C$0.20 for two years. The strike price reflects a 17.65% premium to the Nov. 15 closing share price of C$0.17.
Difference Capital Funding Inc. invested C$1.35 million.
Proceeds will be used for general working capital and other corporate purposes.
Vancouver, B.C.-based Lignol develops bio-refineries to produce fuel-grade ethanol and other biochemical co-products from cellulosic biomass feedstock.
| Issuer: | Lignol Energy Corp.
|
| Issue: | Units of one common share and one half share warrant
|
| Amount: | C$4,515,041
|
| Price: | C$0.15
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.20
|
| Agents: | Canaccord Genuity Corp., Global Securities Corp. and Haywood Securities Inc.
|
| Investor: | Difference Capital Funding Inc. (for C$1.35 million)
|
| Pricing date: | Nov. 16
|
| Settlement date: | Dec. 17
|
| Stock symbol: | TSX Venture: LEC
|
| Stock price: | C$0.17 at close Nov. 15
|
| Market capitalization: | C$13.86 million
|
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