Syndicate of agents included M Partners and Primary Capital
By Devika Patel
Knoxville, Tenn., May 25 – Unigold Inc. said it completed its C$4.8 million private placement of units. The deal priced on May 2 and was increased on May 11 to C$4 million from C$2.5 million, with an over-allotment option for another 20% of units. The sales were conducted by a syndicate of agents which included M Partners and Primary Capital Inc.
The company sold 16 million units of one common share and one warrant at C$0.30 per unit.
Each two-year warrant is exercisable at C$0.45, which is a 28.57% premium to the company’s closing price on April 29 of C$0.35. The warrants expire on May 25, 2018.
Proceeds will be used to fund the company’s continued exploration and development of its gold assets in the Dominican Republic and for general working capital purposes.
The company has the right to accelerate the expiry of the warrants if the closing price of the company’s common shares closes above C$0.90 per common share for more than 20 consecutive trading days after four months and one day from closing, in which case the warrants will expire 30 days after the notice is given, according to a company announcement.
Toronto-based Unigold is a gold exploration company.
| Issuer: | Unigold Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$4.8 million, including C$800,000 greenshoe
|
| Units: | 16 million
|
| Price: | C$0.30
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | May 25, 2018
|
| Warrant strike price: | C$0.45
|
| Agents: | M Partners and Primary Capital Inc.
|
| Pricing date: | May 2
|
| Upsized: | May 11
|
| Settlement date: | May 25
|
| Stock symbol: | TSX Venture: UGD
|
| Stock price: | C$0.35 at close April 29
|
| Market capitalization: | C$8.84 million
|
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