Logan Metals to raise C$5 million in private placement of subscription receipts

By Sheri Kasprzak

Atlanta, Dec. 23 - Logan Metals Inc. said it plans to raise C$5 million in a brokered private placement of subscription receipts.

The company will sell the receipts, which are exchangeable for one common share of Logan before the closing of the company's acquisition by Crossfield Capital Corp.

Logan will be acquired on the basis of one share of Logan for 1.5 common shares of Crossfield.

The number of subscription receipts to be issued will be determined according to the market, but there is a C$0.77 floor on the price.

The proceeds from the offering will be placed in escrow and released upon completion of the acquisition.

GMP Securities Ltd. is the lead underwriter in the deal.

Based in Woodbridge, Ont., Logan Metals is a sheet metal company. The proceeds from the private placement will be used to increase working capital due to the expansion and growth of Crossfield's business through the acquisition of Logan and WAM Industries Ltd. The remainder of the funds will be used to pay down debt and for general corporate purposes.

© 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.