Company raising cash to repurchase 10% convertibles due March 4, 2011
By Devika Patel
Knoxville, Tenn., Oct. 28 - Vista Gold Corp. completed a private placement of special warrants on Oct. 22, according to an 8-K filed Thursday with the Securities and Exchange Commission. The offering priced for $30 million on Sept. 30 and was increased to $33.76 million on Oct. 13. The deal raised $33.73 million.
Wellington West Capital Markets Inc. was the co-agent with Sprott Private Wealth LP.
The company sold 14,666,739 special warrants at $2.30 each. The price per special warrant is a 10.51% discount to the Sept. 29 closing share price of $2.57.
The special warrants are automatically convertible into units of one common share and one warrant, with each five-year warrant exercisable at $3.50 in the first year, $4.00 in the second year, $4.50 in the third year and $5.00 thereafter. The strike prices are premiums of 36.19%, 55.64%, 75.1% and 94.55%, respectively, to the Sept. 29 closing share price.
Proceeds will be used to repurchase the company's $23 million of outstanding 10% senior secured convertible notes due March 4, 2011, advance the Mount Todd project and for general corporate purposes.
Based in Denver, Vista is a gold exploration company.
| Issuer: | Vista Gold Corp.
|
| Issue: | Special warrants convertible into units of one common share and one warrant
|
| Amount: | $33,733,500
|
| Warrants: | 14,666,739
|
| Price: | $2.30
|
| Warrants: | One warrant per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.50 in the first year, $4.00 in the second year, $4.50 in the third year and $5.00 thereafter
|
| Agent: | Sprott Private Wealth LP, Wellington West Capital Markets Inc.
|
| Pricing date: | Sept. 30
|
| Upsized: | Oct. 13
|
| Settlement date: | Oct. 22
|
| Stock symbol: | Amex: VGZ
|
| Stock price: | $2.57 at close Sept. 29
|
| Market capitalization: | $127.63 million
|
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