By Devika Patel
Knoxville, Tenn., Oct. 15- Pinetree Capital Ltd. said it is granting the underwriters of its planned C$65.625 million private placement a greenshoe of up to 10%.
The deal was announced Oct. 10.
The company plans to sell up to 12,500,000 units of one common share and one half-share warrant at C$5.25 per unit. Each whole warrant still will be exercisable at C$6.50 for five years.
Closing is expected on Oct. 23.
Up to 1,100,000 units may be purchased by insiders.
If the greenshoe is fully exercised, a total of 13,750,000 units will be sold for C$72,187,500
As previously reported, the deal is being conducted by syndicate of agents led by Genuity Capital Markets and including Westwind Partners Inc.
The company may pay the agents a 5.5% cash commission and issue compensation warrants equal to 5.5% of the units sold. Each compensation warrant is exercisable for one common share at C$5.30, down from C$6.00, for two years.
Proceeds will be used for future investment activities and for general corporate purposes.
Pinetree is an investment banking company based in Toronto.
Issuer: | Pinetree Capital Ltd.
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Issue: | Units of one common share and one half-share warrant
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Amount: | C$65.625 million (maximum)
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Greenshoe: | 10%, or 1,250,000 units
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Units: | 12,500,000 (maximum)
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Price: | C$5.25
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Warrants: | One half warrant per unit
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Warrant expiration: | Five years
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Warrant strike price: | C$6.50
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Agent: | Genuity Capital Markets (lead), Westwind Partners Inc.
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Pricing date: | Oct. 10
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Upsized: | Oct. 12
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Settlement date: | Oct. 23
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Stock symbol: | Toronto: PNP
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Stock price: | C$5.53 at close Oct. 9
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