Brokered, commercially reasonable efforts deal sells 2,859,500 units
By Devika Patel
Knoxville, Tenn., Oct. 21 – Grande West Transportation Group Inc. said it raised C$392,750 in the second and final tranche of a C$1.43 million private placement of units. The deal priced for C$3 million with a 25% greenshoe on July 16 and raised C$1.08 million on Aug. 27.
The company sold 2,859,500 units of one common share and one half-share warrant at C$0.50 per unit. It sold 2,074,000 units in the initial tranche and 785,500 units in the second.
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 first-tranche warrants are exercisable until Aug. 26, 2016.
The deal was being 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.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$1,429,750
|
| Units: | 2,859,500
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years, Aug. 26, 2016
|
| Warrant strike price: | C$0.65
|
| Agents: | Wolverton Securities Ltd. and Euro Pacific Canada, Inc. (co-leads)
|
| Pricing date: | July 16
|
| Settlement date: | Aug. 27 (for C$1,037,000), Oct. 21 (for C$392,750)
|
| Stock symbol: | TSX Venture: BUS
|
| Stock price: | C$0.50 at close July 15
|
| Market capitalization: | C$15.44 million
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