By Sheri Kasprzak
Atlanta, April 15 - Veracel Inc. said it plans to raise C$114 million in a private placement.
The offering includes 26 million subscription receipts at C$4.00 each and 2 million flow-through shares at C$5.00 each.
The receipts are exchangeable for one common share upon the acquisition of Veracel by Birchcliff Energy Ltd.
The flow-through shares will be issued after the merger is completed.
An underwriting syndicate led by GMP Securities Ltd. and including Sprott Securities Inc. and Scotia Capital Inc. has an over-allotment option for an additional 8 million receipts.
The offering is expected to close May 4.
Based in Calgary, Alta., Veracel is a biotechnology company focused on cancer research.
| Issuer: | Veracel Inc.
|
| Issue: | Subscription receipts and flow-through shares
|
| Amount: | C$114 million
|
| Underwriters: | GMP Securities Ltd (lead); Sprott Securities Inc.; Scotia Capital Inc.
|
| Pricing date: | April 14
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| Settlement date: | May 4
|
|
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| Subscription receipts
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| Issue: | Subscription receipts exchangeable for one common share
|
| Receipts: | 26 million
|
| Greenshoe: | For 8 million receipts
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| Price: | C$4.00
|
| Warrants: | No
|
|
|
| Flow-through shares
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| Issue: | Flow-through shares
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| Shares: | 2 million
|
| Price: | C$5.00
|
| Warrants: | No
|
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