By Devika Patel
Knoxville, Tenn., June 3 - Archangel Diamond Corp. priced a $170 million private placement of subscription receipts.
The company will sell 136 million subscription receipts at $1.25 apiece.
Cencan SA is purchasing 92.8 million of the subscription receipts for $116 million.
The proceeds of the deal will be held in escrow pending the satisfaction of the release conditions, which includes the satisfaction of each of the conditions necessary for the completion of Archangel's proposed acquisition of a 49.99% interest in OAO Arkhangelskoe Geologodobychnoe Predpriyatie. If any of the release conditions have not been met 115 days after the deal settles, the subscription receipts will be canceled and the escrowed funds shall be returned to the investors.
Each subscription receipt from the deal will be exchanged for one unit of one common share and a half-share warrant after the release conditions have been satisfied. Each whole warrant is exercisable at $1.50 for two years.
Canaccord Capital Corp. and RBC Capital Markets are the agents. The agents have a greenshoe for an additional 24 million receipts, or $30 million.
Settlement is expected June 19.
Based in Toronto, Archangel is a diamond exploration company.
| Issuer: | Archangel Diamond Corp.
|
| Issue: | Subscription receipts to be exchanged for one unit of one common share and a half-share warrant
|
| Amount: | $170 million
|
| Greenshoe: | $30 million
|
| Receipts: | 136 million
|
| Price: | $1.25
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $1.50
|
| Agents: | Canaccord Capital Corp., RBC Capital Markets
|
| Investor: | Cencan SA (for $116 million)
|
| Pricing date: | June 3
|
| Settlement date: | June 19
|
| Stock symbol: | TSX Venture: AAD
|
| Stock price: | C$1.36 at close June 2
|
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