By Sheri Kasprzak
New York, Jan. 26 - Vedron Gold Inc. said the greenshoe on its previously announced private placement was exercised, bringing the proceeds to C$5.5 million.
The company will issue 8.75 million flow-through units at C$0.40 each and 5 million units at C$0.40 each.
The flow-through units consist of one flow-through share and one half-share warrant. The whole warrants are exercisable at C$0.60 each for 18 months.
The non flow-through units include one share and one warrant. The warrants are exercisable at C$0.60 each for 18 months.
The expiry of the warrants may be accelerated to 30 days if, after four months, the company's stock trades above C$0.90 for more than 20 consecutive trading days.
Placement agent Primary Capital Inc. exercised its over-allotment option for C$500,000.
Northfield Capital Corp. is the lead investor in the deal.
The offering priced Jan. 19 as including 10 million flow-through units and 2.5 million non flow-through units.
Proceeds will be used for exploration on the company's gold projects and for working capital.
Toronto-based Vedron is a gold exploration company.
| Issuer: | Vedron Gold Inc.
|
| Issue: | Flow-through and non flow-through units
|
| Amount: | C$5.5 million (includes greenshoe for C$500,000)
|
| Placement agent: | Primary Capital Inc.
|
| Investor: | Northfield Capital Corp. (lead)
|
| Pricing date: | Jan. 19
|
| Greenshoe exercised: | Jan. 26
|
| Stock symbol: | TSX Venture: VG
|
| Stock price: | C$0.67 at close Jan. 18
|
| Stock price: | C$0.69 at close Jan. 26
|
|
|
| Flow-through units
|
| Issue: | Units of one share and one half-share warrant
|
| Units: | 8.75 million
|
| Price: | C$0.40
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.60
|
|
|
| Non flow-through units
|
| Issue: | Units of one share and one warrant
|
| Units: | 5 million
|
| Price: | C$0.40
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.60
|
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