Brokered, commercially reasonable-efforts offering has 25% greenshoe
By Devika Patel
Knoxville, Tenn., July 16 – Grande West Transportation Group Inc. announced it has arranged a C$3 million private placement of units. The deal has a 25% greenshoe.
The company will sell 6 million units of one common share and one half-share warrant at C$0.50 per unit.
Each whole warrant is exercisable at C$0.65 for two years. The strike price represents a 30% premium to C$0.50, the July 15 closing share price.
The deal will be conducted on a commercially reasonable-efforts basis by co-lead agents Wolverton Securities Ltd. and Euro Pacific Canada, Inc.
Proceeds will be used to fund the advance purchase of up to 15 Vicinity buses.
The bus manufacturing company is based in Vancouver, B.C.
| Issuer: | Grande West Transportation Group Inc.
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$3 million
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| Greenshoe: | 25%
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| Units: | 6 million
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| Price: | C$0.50
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.65
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| Agents: | Wolverton Securities Ltd. and Euro Pacific Canada, Inc. (co-leads)
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| Pricing date: | July 16
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| Stock symbol: | TSX Venture: BUS
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| Stock price: | C$0.50 at close July 15
|
| Market capitalization: | C$17.95 million
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