Yoho completes C$17.58 million stock, convertible debentures placement

33% greenshoe partially exercised, brokered deal funds debt reduction

By Devika Patel

Knoxville, Tenn., June 16 – Yoho Resources Inc. said it settled a C$17.58 million private placement of stock and a C$10 million sale of 8.25% convertible secured second-lien debentures. The deal priced for C$5 million with a 33% greenshoe on June 1 and the remainder of the greenshoe may still be exercised for 30 days.

The company sold 950,000 common shares at C$0.63 apiece, a 3.08% discount to the May 29 closing share price of C$0.65. It also sold 7,562,300 flow-through common shares at C$0.68 apiece, a 4.62% premium to the May 29 closing share price.

In addition, the underwriters bought C$11,835,000 of 8.25% convertible debentures on a private placement bought-deal basis for resale. The debentures mature on June 30, 2020 and will initially be convertible into common shares at $0.78 per share, which is a 20% premium to the May 29 closing price. The notes are redeemable on or after June 30, 2018 at par plus interest,

The total raised includes a partial exercise of the greenshoe of 150,000 common shares, 950,535 flow-through shares and C$1,835,000 of debentures.

The sales were conducted on a private placement bought-deal basis for resale by a syndicate of underwriters led by led by Acumen Capital Finance Partners Ltd. and including FirstEnergy Capital Corp. and National Bank Financial Inc. The agents have a 33% greenshoe.

Proceeds will be used will be used to reduce Yoho's bank debt and for general corporate purposes, including exploration.

Yoho is a Calgary, Alta.-based junior oil and natural gas company with operations focusing on the northwest Peace River Arch of Alberta and northeast British Columbia.

Issuer:	Yoho Resources Inc.
Issue:	Common shares, flow-through common shares, convertible secured second-lien debentures
Amount:	C$17,575,864, including C$2,575,864 greenshoe
Warrants:	No
Underwriters:	Acumen Capital Finance Partners Ltd. (lead), FirstEnergy Capital Corp. and National Bank Financial Inc.
Pricing date:	June 1
Settlement date:	June 16
Stock symbol:	TSX Venture: YO
Stock price:	C$0.65 at close May 29
Market capitalization:	C$27.37 million
Debentures
Amount:	C$11,835,000, including C$1,835,000 greenshoe
Maturity:	June 30, 2020
Coupon:	8.25%
Conversion price:	$0.78
Conversion premium:	20%
Common stock
Amount:	C$598,500, including C$94,500 greenshoe of 150,000 shares
Shares:	950,000
Price:	C$0.63
Flow-through common stock
Amount:	C$5,142,364, including C$646,364 greenshoe of 950,535 shares
Shares:	7,562,300
Price:	C$0.68

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