Units sale has C$1.5 million greenshoe, finances capital expenditures
By Devika Patel
Knoxville, Tenn., May 27 - Prima Colombia Hardwood Inc. announced it plans a C$10 million private placement of units through a syndicate of agents co-led by Cormark Securities Inc. and Canaccord Genuity Corp. and including EAS Advisors LLC. The offering has a C$1.5 million greenshoe. The company also secured a C$4 million bridge loan.
The company will sell units of one common share and one half-share warrant at C$0.20 per unit on a best-efforts basis. The whole warrants will each be exercisable at C$0.35 until Sept. 21, 2015. The strike price reflects a 79.49% premium to the May 26 closing share price of C$0.195.
Settlement is expected June 21.
Prima said it has also negotiated a C$4 million bridge loan facility with Endeavour Capital Corp. The loan may be drawn in two equal tranches of C$2 million, and the first tranche has already been drawn down.
Endeavor also will receive 2.7 million warrants for each draw-down. Each warrant is exercisable at C$0.22 until May 20, 2012. The strike price is a 12.82% premium to the May 26 closing share price.
Proceeds from both offerings will be used for capital expenditures and general working capital.
The Vancouver, B.C.-based forest products company focuses on international tropical hardwood timber development, production and marketing.
| Issuer: | Prima Colombia Hardwood Inc.
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| Issue: | Units of one common share and a half-share warrant, bridge loan
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| Amount: | C$14 million
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| Pricing date: | May 27
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| Stock symbol: | TSX Venture: PCT
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| Stock price: | C$0.195 at close May 26
|
| Market capitalization: | C$53.92 million
|
|
|
| Units
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| Amount: | C$10 million
|
| Greenshoe: | C$1.5 million
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| Price: | C$0.20
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Sept. 21, 2015
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| Warrant strike price: | C$0.35
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| Agents: | Cormark Securities Inc. and Canaccord Genuity Corp. (leads), EAS Advisors LLC
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| Settlement date: | June 21
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| Loan
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| Amount: | C$4 million
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| Warrants: | 5.4 million
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| Warrant expiration: | May 20, 2012
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| Warrant strike price: | C$0.22
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| Investor: | Endeavour Capital Corp.
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| Settlement date: | May 27 (for C$2 million)
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