Three-year deal sells stock to Lincoln Park to fund corporate purposes
By Devika Patel
Knoxville, Tenn., Nov. 27 - Avalon Rare Metals Inc. arranged a $30 million share purchase agreement with Lincoln Park Capital Fund, LLC on Nov. 27, according to an 8-K and prospectus supplement filed Wednesday with the Securities and Exchange Commission.
The company will sell the common shares to Lincoln Park over three years. The pricing will be based upon market prices without any fixed discount.
Lincoln Park will initially purchase $2.8 million in shares at $0.64 per share.
The company will issue 918,521 shares to Lincoln Park as a commitment fee and will issue up to an additional 918,521 shares as compensation on a pro rata basis.
Proceeds will be used for working capital and other general corporate purposes.
Avalon is a tin, lithium, tantalum, niobium, cesium, indium, gallium, zirconium and calcium feldspar exploration and development company in Toronto.
| Issuer: | Avalon Rare Metals Inc.
|
| Issue: | Share purchase agreement
|
| Amount: | $30 million
|
| Tenor: | Three years
|
| Price: | No fixed discount
|
| Warrants: | No
|
| Investor: | Lincoln Park Capital Fund, LLC
|
| Fees: | 1,837,042 shares
|
| Pricing date: | Nov. 27
|
| Stock symbol: | Amex: AVL
|
| Stock price: | $0.64 at close Nov. 26
|
| Market capitalization: | $63.68 million
|
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