Underwriting syndicate helps fund product development, working capital
By Devika Patel
Knoxville, Tenn., July 9 - Redline Communications Group Inc. said it will conduct a C$10 million private placement of units. The deal has a C$3.18 million greenshoe.
The company will sell 1,667,000 units of one common share and one half-share warrant at C$6.00 per unit on a bought-deal basis. Each whole two-year warrant will be exercisable at C$8.00. The strike price reflects a 33.33% premium to the July 8 closing share price of C$6.00.
The offering is being conducted via a syndicate of underwriters led by Cantor Fitzgerald Canada Corp. and including Cormark Securities Inc., Stifel Nicolaus Canada Inc., Byron Capital Markets Ltd. and Canaccord Genuity Corp.
Settlement is expected July 30.
Proceeds will be used to implement Redline's growth strategy, for product development, for working capital and for general corporate purposes.
The Toronto company develops broadband fixed wireless base stations, subscriber stations and element management systems for point-to-multipoint and point-to-point applications for commercial end-users.
| Issuer: | Redline Communications Group Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$10,002,000
|
| Greenshoe: | C$3.18 million
|
| Units: | 1,667,000
|
| Price: | C$6.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$8.00
|
| Underwriters: | Cantor Fitzgerald Canada Corp. (lead), Cormark Securities Inc., Stifel Nicolaus Canada Inc., Byron Capital Markets Ltd. and Canaccord Genuity Corp.
|
| Pricing date: | July 9
|
| Settlement date: | July 30
|
| Stock symbol: | Toronto: RDL
|
| Stock price: | C$6.00 at close July 8
|
| Market capitalization: | C$78.23 million
|
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