Brokered placement to fund acquisition of Wilson Creek Energy, LLC
By Devika Patel
Knoxville, Tenn., Sept. 30 - Corsa Capital Ltd. said it sold 154,319,800 subscription receipts in a private placement. The deal, which priced for C$56 million on Aug. 17, included a 15% greenshoe. The company increased the deal to about C$63.8 million on Sept. 17.
The placement was conducted in connection with the Corsa's planned acquisition of Wilson Creek Energy, LLC, a Somerset County, Pa.-based owner of coal properties.
The company sold the receipts at C$0.45 apiece for C$69.44 million. The price per receipt is a 10% discount to the Aug. 16 closing share price of C$0.50.
Each receipt will convert into one common share.
The deal was conducted via lead agents Cormark Securities Inc. and GMP Securities LP. The syndicate of agents also includes Canaccord Genuity Corp. and Haywood Securities Inc.
Proceeds will be used to satisfy the cash portion of the acquisition's purchase price, for construction costs of a coal cleaning plant, to purchase property, for development and for general working capital purposes.
Based in Vancouver, B.C., Corsa explores for minerals.
| Issuer: | Corsa Capital Ltd.
|
| Issue: | Subscription receipts
|
| Amount: | C$69,443,910
|
| Receipts: | 154,319,800
|
| Price: | C$0.45
|
| Warrants: | No
|
| Agent: | Cormark Securities Inc. and GMP Securities LP (leads), Canaccord Genuity Corp. and Haywood Securities Inc.
|
| Pricing date: | Aug. 17
|
| Revised: | Sept. 17
|
| Settlement date: | Sept. 30
|
| Stock symbol: | TSX Venture: CSO
|
| Stock price: | C$0.50 at close Aug. 16
|
| Market capitalization: | C$9.61 million
|
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