Underwriting syndicate helps fund product development, working capital
By Devika Patel
Knoxville, Tenn., July 30 - Redline Communications Group Inc. said it completed a C$10.62 million private placement of units. The deal priced for C$10 million with a C$3.18 million greenshoe on July 9.
The company sold 1,769,083 units of one common share and one half-share warrant at C$6.00 per unit on a bought-deal basis. Of the units, 102,083 were part of the partially exercised greenshoe.
Each whole warrant is exercisable at C$8.00 until July 30, 2015. The strike price reflects a 33.33% premium to the July 8 closing share price of C$6.00.
The offering was 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.
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$10,614,498 (including C$612,498 greenshoe)
|
| Units: | 1,769,083
|
| Price: | C$6.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | July 30, 2015
|
| 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$74.52 million
|
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