By Devika Patel
Knoxville, Tenn., Nov. 1 - Cathay Forest Products Corp. said it has increased the size of a previously announced private placement of common shares to C$45 million from C$25 million. It also priced the terms of the deal, which was announced on Oct. 11.
Cathay will sell 30 million shares at C$1.50 apiece.
The placement is being conducted by a syndicate of underwriters led by Canaccord Capital Corp. and CIBC World Markets Inc. and including Jennings Capital Inc.
The shares will have a four-month hold period.
Proceeds from the deal, which is expected to settle on Nov. 20, will be used to fund a previously announced acquisition of a 51% interest in a standing timber concession in Russia.
Cathay is a timber company based in Richmond Hill, Ont.
| Issuer: | Cathay Forest Products Corp.
|
| Issue: | Stock
|
| Amount: | C$45 million
|
| Shares: | 30 million
|
| Price: | C$1.50
|
| Warrants: | No
|
| Underwriters: | Canaccord Capital Corp. and CIBC World Markets Inc. (lead), Jennings Capital Inc.
|
| Announcement date: | Oct. 11
|
| Pricing date: | Nov. 1
|
| Settlement date: | Nov. 20
|
| Stock symbol: | TSX Venture: CFZ
|
| Stock price: | C$1.64 at close Oct. 31
|
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