Veracel says greenshoe will be fully exercised, lifting private placement to C$146 million

By Sheri Kasprzak

Atlanta, May 3 - Veracel Inc. said the over-allotment option on its previously announced C$114 million private placement will be fully exercised, lifting the total amount of the offering to C$146 million.

A syndicate of underwriters led by GMP Securities Ltd. and including Sprott Securities Inc. and Scotia Capital Inc. has an over-allotment option on the offering for up to 8 million additional subscription receipts.

Including the greenshoe, Veracel will sell 34 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.

The offering is expected to close May 4.

Based in Calgary, Alta., Veracel is a biotechnology company focused on cancer research.

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