Deal sells 2,818,845 common shares with warrants for 3,054,160 shares
By Devika Patel
Knoxville, Tenn., Sept. 18 – SinoCoking Coal and Coke Chemical Industries, Inc. will raise $14.38 million in a registered direct offering of stock on Sept. 18, according to an 8-K filed Thursday with the Securities and Exchange Commission. FT Global Capital, Inc. is the agent for the deal, which may raise an additional $10 million.
The company will sell 2,818,845 common shares at $5.10 each, a 16.67% discount to the closing share price of $6.12 on Sept. 17.
Investors will also receive warrants for 3,054,160 shares. Of the warrants, 1,409,423 are exercisable at $6.38 for four years, and 1,644,737 are exercisable at $6.08 for 10 months. The strike prices are a 4.25% premium and a 0.65% discount to the closing share price on Sept. 17.
Settlement is expected Sept. 23.
Under the purchase agreement, the investors will have the option to purchase up to $10 million of additional shares and warrants. The option, which begins six months after the settlement date and closes 10 months after the settlement date, allows the investors to purchase their pro rata share of 1,644,737 common shares and series C warrants for up to 822,369 shares, which would be exercisable at $6.08 per share for four years.
The Pingdingshan, China, company uses coal from its own mines and third-party mines to produce basic and value-added coal products for steel manufacturers, power generators and various industrial users.
| Issuer: | SinoCoking Coal and Coke Chemical Industries, Inc.
|
| Issue: | Common stock
|
| Amount: | $14,376,109.50
|
| Shares: | 2,818,845
|
| Warrants: | For 3,054,160 shares
|
| Warrant expiration: | Four years (for 1,409,423 shares), 10 months (for 1,644,737 shares)
|
| Warrant strike prices: | $6.38 (for 1,409,423 shares), $6.08 (for 1,644,737 shares)
|
| Agent: | FT Global Capital, Inc.
|
| Pricing date: | Sept. 18
|
| Settlement date: | Sept. 23
|
| Stock symbol: | Nasdaq: SCOK
|
| Stock price: | $6.12 at close Sept. 17
|
| Market capitalization: | $96.73 million
|
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