Agent syndicate raises funds for exploration, development activities
By Devika Patel
Knoxville, Tenn., Oct. 21 - Mega Precious Metals Inc. said it increased its private placement of units to C$9.67 million from C$9 million. A syndicate of agents, led by Octagon Capital Corp. and including PowerOne Capital Markets Ltd. and Stonecap Securities Inc., is conducting the offering on a best-efforts basis with a C$1.45 million greenshoe. The deal priced on Oct. 14 and originally had a C$1.35 million greenshoe.
The company will now sell 5 million units of one common share and one half-share warrant at C$0.53 per unit and 10.8 million flow-through units of one flow-through common share and one half-share warrant at C$0.65 per unit. The flow-through units were originally priced at C$0.70 per unit.
Each whole two-year warrant will be exercisable at C$0.70, a 29.63% premium to the Oct. 13 closing share price of C$0.54.
Settlement is expected on Nov. 8.
Proceeds will be used for exploration and development activities and general corporate and working capital purposes.
Mega is a precious metal exploration company based in Thunder Bay, Ont.
| Issuer: | Mega Precious Metals Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$9.67 million
|
| Greenshoe: | C$1,450,500
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.70
|
| Agent: | Octagon Capital Corp. (lead), PowerOne Capital Markets Ltd. and Stonecap Securities Inc.
|
| Pricing date: | Oct. 14
|
| Upsized: | Oct. 21
|
| Settlement date: | Nov. 8
|
| Stock symbol: | TSX Venture: MGP
|
| Stock price: | C$0.54 at close Oct. 14
|
| Market capitalization: | C$39.09 million
|
|
|
| Units
|
| Amount: | C$2.65 million
|
| Units: | 5 million
|
| Price: | C$0.53
|
|
|
| Flow-through units
|
| Amount: | C$7.02 million
|
| Units: | 10.8 million
|
| Price: | C$0.65
|
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