Private placement's 15% greenshoe may lift proceeds to C$3.45 million
By Marisa Wong
Madison, Wis., May 26 - Rogue Resources Inc. announced it will raise C$3 million through a private placement on a best-efforts basis of units and flow-through units.
Jennings Capital Inc. is the agent for the private placement.
The units are priced at C$0.25 each, and the flow-through units are priced at C$0.33 each. The price per unit represents a 21.88% discount to the May 25 closing share price of C$0.32, and the price per flow-through unit represents a 3.13% premium.
Each unit will consist of one common share and one half of a non-transferable common share purchase warrant. Each flow-through unit will consist of one flow-through common share and one half of a warrant.
Each whole warrant, whether acquired as part of a unit or flow-through unit, will entitle the holder to purchase one common share at an exercise price of C$0.37 for 24 months. The strike price represents a 15.63% premium to the May 25 closing share price.
The company said that the number of flow-through units may not exceed 40% of the total number of units and flow-through units sold in the offering.
There is a greenshoe for a number of additional units equal to 15% of the total number of units and flow-through units offered. If the option is exercised in full, gross proceeds from the placement will be C$3.45 million. The maximum number of units that may be sold in the offering, assuming full exercise of the over-allotment option, is 13.8 million units.
Proceeds will be used to fund exploration expenditures on the company's Canadian mineral projects, for expenditures on the company's Radio Hill iron ore property and for general working capital.
The offering is scheduled to close on June 16.
Rogue is a Vancouver, B.C.-based advanced-stage mineral exploration company.
| Issuer: | Rogue Resources Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$3 million
|
| Greenshoe: | For additional C$450,000
|
| Agent: | Jennings Capital Inc.
|
| Settlement date: | June 16
|
| Stock symbol: | TSX Venture: RRS
|
| Stock price | C$0.32 at close May 25
|
| Market capitalization: | C$6.56 million
|
|
|
| Units
|
| Price: | C$0.25
|
| Units: | At least 60% of total number of units, flow-through units offered
|
| Warrants: | One half of a warrant per unit
|
| Warrant expiration: | 24 months
|
| Warrant strike price: | C$0.37
|
|
|
| Flow-through units
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| Price: | C$0.33
|
| Units: | Up to 40% of total number of units, flow-through units offered
|
| Warrants: | One half of a warrant per unit
|
| Warrant expiration: | 24 months
|
| Warrant strike price: | C$0.37
|
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