Brokered offering has 15% greenshoe; funds cover exploration in Quebec
By Devika Patel
Knoxville, Tenn., Oct. 20 - Nemaska Exploration Inc. said it increased a private placement of units. The deal priced for C$5 million on Oct. 8.
The company will now raise C$6.5 million by selling 4.25 million units at C$0.40 each and 9.6 million flow-through units at C$0.50 each on a reasonable efforts basis. The deal has a 15% greenshoe.
Each unit consists of one common share and one warrant. Each flow-through unit consists of one flow-through common share and one warrant.
Each warrant is exercisable for two years at C$0.55. The strike price reflects a 41.03% premium to the Oct. 7 closing share price of C$0.39.
The deal is being conducted by a syndicate of agents led by Dundee Securities Corp. and including Industrial Alliance Securities Inc.
Settlement is expected Nov. 2.
Proceeds will be used for exploration and development of the company's Quebec properties and general working capital purposes
Nemaska is a mineral exploration company based in Quebec City.
| Issuer: | Nemaska Exploration Inc.
|
| Issue: | Units of one common share and one warrant; flow-through units of one flow-through common share and one warrant
|
| Amount: | C$6.5 million
|
| Greenshoe: | 15%
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.55
|
| Agents: | Dundee Securities Corp. (lead) and Industrial Alliance Securities Inc.
|
| Pricing date: | Oct. 8
|
| Upsized: | Oct. 20
|
| Settlement date: | Nov. 2
|
| Stock symbol: | TSX Venture: NMX
|
| Stock price: | C$0.39 at close Oct. 8
|
| Market capitalization: | C$16.01 million
|
|
|
| Units
|
| Amount: | C$1.7 million
|
| Units: | 4.25 million
|
| Price: | C$0.40
|
|
|
| Flow-through units
|
| Amount: | C$4.8 million
|
| Units: | 9.6 million
|
| Price: | C$0.50
|
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