By Susanna Moon
Chicago, June 8- Serengeti Resources Inc. completed a C$20 million private placement of units and flow-through shares, according to a press release, increased from the C$16 million priced May 16 through exercise of the greenshoe.
Of the proceeds, C$19 million represents the brokered portion led by Canaccord Capital Corp. Other underwriters are Pacific International Securities Inc. and Dundee Securities Corp.
The brokered portion includes an additional C$4 million in over-allotment shares.
The deal was originally announced at C$16 million on May 16.
The company also raised C$999,000 in a non-brokered placement.
For the brokered portion of the placement, the company issued 3 million units at a price of C$3 each and 1.6 million flow-through shares at a price of C$3.75 each, for a total of C$15 million.
Each unit consists of one common share and one-half of a transferable common share purchase warrant.
Each whole warrant allows holders to subscribe to an additional common share at a price of C$4 for one year.
The underwriters exercised a greenshoe for 1,333,400 additional units.
For the non-brokered private placement, the company raised C$999,000 comprising 333,000 units.
The proceeds will go toward general working capital and for exploration.
The securities will be subject to a holding period that expires on Oct. 9.
Serengeti is a mineral exploration company based in Vancouver, B.C.
Issuer Serengeti Resources Inc.
| Issue: | Units of one common share and one-half of one purchase warrant
|
| Amount: | C$20 million
|
| Underwriters: | Canaccord Capital Corp. (lead); Pacific International Securities Inc.; and Dundee Securities Corp.; Non-brokered for $999,000
|
| Pricing date: | May 16
|
| Settlement date: | June 8
|
| Stock symbol: | TSXV: SIR
|
| Stock price: | C$3.29 at close May 15
|
| C$4.05 at close June 7
|
|
|
| Units
|
| Units: | 3 million plus greenshoe for 1,333,400 units
|
| Price: | C$3
|
| Warrants: | One share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$4
|
| Greenshoe: | 1,333,400 units
|
|
|
| Flow-through shares
|
| Shares: | 1.6 million
|
| Price: | C$3.75
|
| Warrants: | No
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