Deal price reflects 41.43% premium to stock’s closing price Friday
By Susanna Moon
Chicago, May 2 – Crystal Peak Minerals Inc. said it is negotiating a C$5.35 million non-brokered private placement of shares with EMR Capital Resources Fund 1, LP.
The company will sell 12,620,331 common shares at a price of C$0.4243 each, according to a company notice.
The price per share is a 41.43% premium to the company’s closing price on April 29.
EMR also exercised its full contingent of 34,516,129 warrants at a price of C$0.4243 per share for proceeds of C$14.65 million under its subscription agreement with the company dated May 29, 2015.
The transactions will increase EMR’s holdings in the company to about 84.8 million shares, or 43.2% of issued shares, from about 37.6 million shares, or 25.2%.
As a result, EMR will be allowed to appoint an additional nominee director to be approved by shareholders at the meeting set for June 21, the release said.
Proceeds will be used to fund the continuing development program of the company’s premium specialty fertilizer project on the Sevier Playa in southwestern Utah.
Crystal Peak is a specialty fertilizers production company based in Toronto.
| Issuer: | Crystal Peak Minerals Inc.
|
| Issue: | Common stock
|
| Amount: | C$5,354,806
|
| Shares: | 12,620,331
|
| Price: | C$0.4243
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | EMR Capital Resources Fund 1, LP
|
| Pricing date: | May 2
|
| Stock symbol: | Canada: CPM
|
| Stock price: | C$0.30 at close April 29
|
| Market capitalization: | C$46.6 million
|
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