Receipts are each convertible into a share after $320 million advance
By Devika Patel
Knoxville, Tenn., Dec. 19 - Niko Resources Ltd. said it will conduct a C$33.23 million private placement of subscription receipts.
The company will sell 16,853,578 receipts, which each automatically converts into one common share, at C$1.19715 per receipt. The price per receipt is a 0.93% discount to the Dec. 18 closing share price of C$1.99.
The receipts will convert once the company secures an advance of at least $320 million under its $340 million loan facility agreement. If the advance is not completed by Dec. 31, investors may return their receipts for the purchase price.
Settlement is expected Dec. 20.
Proceeds will be used to repay some of the company's 7% senior unsecured notes.
The oil and gas explorer is based in Calgary, Alta.
| Issuer: | Niko Resources Ltd.
|
| Issue: | Subscription receipts
|
| Amount: | C$33,226,829
|
| Receipts: | 16,853,578
|
| Price: | C$1.9715
|
| Warrants: | No
|
| Pricing date: | Dec. 19
|
| Settlement date: | Dec. 20
|
| Stock symbol: | Toronto: NKO
|
| Stock price: | C$1.99 at close Dec. 18
|
| Market capitalization: | C$136.22 million
|
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