By Devika Patel
Knoxville, Tenn., May 29 - CVTech Group Inc. announced it will conduct an C$11.51 million private placement of shares and subscription receipts with Laurentian Bank Securities Inc.
The company will sell 3,781,250 subscription receipts at C$1.60 apiece for C$6.05 million and 3,412,500 common shares, also at C$1.60 apiece, for C$5.46 million on a bought deal basis.
There is a greenshoe for an additional 2,181,250 subscription receipts, or C$3.49 million.
Each subscription receipt will be exchangeable, at no additional cost, into one common share when the company's planned acquisition closes.
The proceeds will be used to finance the acquisition, which was announced in February.
Based in Drummondville, Quebec, CVTech is a holding company for concerns that manufacture continuously variable power transmission parts.
| Issuer: | CVTech Group Inc.
|
| Issue: | Subscription receipts, common stock
|
| Amount: | C$11.51 million
|
| Greenshoe: | C$3.49 million
|
| Price: | C$1.60
|
| Warrants: | No
|
| Investor: | Laurentian Bank Securities Inc.
|
| Pricing date: | May 29
|
| Stock symbol: | Toronto: CVT
|
| Stock price: | C$1.50 at close May 29
|
| Market capitalization: | C$83.4 million
|
|
|
| Shares
|
| Amount: | C$5.46 million
|
| Shares: | 3,412,500
|
|
|
| Receipts
|
| Amount: | C$6.05 million
|
| Receipts: | 3,781,250
|
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