Company raising cash to repurchase 10% convertibles due March 4, 2011
By Devika Patel
Knoxville, Tenn., Sept. 30 - Vista Gold Corp. said it plans a $30 million private placement of special warrants through agent Sprott Private Wealth LP.
The company will sell 13,043,479 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.
Once the company receives shareholder approval of the private placement, the special warrants will automatically convert 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 in 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: | $30 million
|
| Warrants: | 13,043,479
|
| 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
|
| Pricing date: | Sept. 30
|
| Stock symbol: | NYSE Amex: VGZ
|
| Stock price: | $2.57 at close Sept. 29
|
| Market capitalization: | $114.13 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
